BOARD OF DIRECTORS

BOARD RESOLUTION NO. 147/2024

SUBJECT: TREASURY MANAGEMENT – AUTHORIZE MONETIZATION OF Bs5 CUT MONETARY MATERIAL.

VIEWED:

• The Political Constitution of the State, of February 7, 2009.
• Law No. 901 of November 28, 1986, on the Creation of a New Monetary Unit.
• Law No. 1670 of October 31, 1995, on the Central Bank of Bolivia (BCB) and its modifications.
• The BCB Statute, approved via Board Resolution No. 095/2022 of October 6, 2022.
• Board Resolution No. 094/2018 of July 24, 2018, and its modifications, which approve the Regulation on Monetization, Distribution, Destruction of Monetary Material, and Destruction of Counterfeit Material and its modifications.
• Board Resolution No. 067/2023 of May 2, 2023, which approves the Exchange and Fractioning Regulation of the Central Bank of Bolivia.
• Contract SANO - DLABS No. 301/2016 of September 12, 2016.
• Technical report BCB-GTES-SAMM-DAMM-INF-2024-117 of November 1, 2024, issued by the Treasury Management (GTES).
• Legal report BCB-GAL-SANO-DLBCI-INF-2024-465, of November 4, 2024, issued by the Legal Affairs Management (GAL).

CONSIDERING:

That Article 327 of the Political Constitution of the State determines that the BCB is a public law institution, with legal personality and its own assets. Within the framework of the State's economic policy, it is the function of the BCB to maintain the stability of the internal purchasing power of the currency, to contribute to economic and social development.

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That paragraph 4 of paragraph I of Article 328 of the Political Constitution of the State establishes that it is an attribution of the BCB, in coordination with the economic policy determined by the Executive Branch, to authorize the issuance of currency.

That Article 1 of Law No. 901 establishes the creation of the Boliviano as a new unit of the monetary system of the Plurinational State of Bolivia, through banknotes and coins that the BCB will issue and circulate with the quality of legal and compulsory tender.

That Article 1 of Law No. 1670 establishes that the Issuing Entity is the sole monetary authority of the country, with administrative, technical, and financial competence and specialized regulatory powers.

That Articles 10 and 11 of Law No. 1670 provide that the BCB will exercise exclusively and non-delegably the function of issuing the monetary unit of Bolivia named the "Boliviano," in the form of banknotes and metallic coins, being that the banknotes and coins issued by the BCB are means of payment of legal tender throughout the territory of the Plurinational State of Bolivia, with unlimited liberatory power.

That Article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Board of Directors, responsible for defining its policies, specialized regulations of general application, and internal rules; as well as for establishing administrative, operational, and financial strategies of the BCB.

That subsections a) and m) of Article 54 of Law No. 1670 determine that the BCB Board of Directors has the attribution to issue regulations and adopt general decisions that may be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law, and to authorize and supervise the printing, issuance, and destruction of banknotes and the minting and withdrawal of coins, within the norms of the aforementioned Law.

That paragraphs 1) and 11) of Article 10 of the BCB Statute provide that the BCB Board of Directors has the attribution to approve general decisions and issue regulations that may be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law, as well as to approve the printing, issuance, and destruction of Boliviano banknotes and coins, and those issued for commemorative and numismatic purposes as well as their denominations, dimensions, designs, and colors, in accordance with Regulations when applicable.

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That Paragraph I of Article 24 of the aforementioned Statute provides that Resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of the members present in a meeting, except in cases where Law No. 1670 or said Statute require qualified majorities.

That Article 26 of the BCB Statute states that the Board of Directors pronounces itself on matters within its competence through Resolutions. It may also do so through decisions that will be expressly recorded in the Minutes. Every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to whom the matter subject to the Resolution corresponds and by a report from the GAL. These reports must be sent to the Board of Directors by the General Management with its recommendation.

That Articles 1 and 3 of the Regulation on Monetization, Distribution, Destruction of Monetary Material, and Destruction of Counterfeit Material determine that its object is to regulate the monetization, distribution, demonetization, destruction of monetary material, and destruction of counterfeit banknotes seized by Financial Intermediation Entities and sent to the BCB. Likewise, it establishes that the BCB Board of Directors, through an express Resolution, will authorize the Monetization of Monetary Material based on the reports of the GTES and the GAL, according to the issuance or storage requirements determined by the GTES.

That Article 2 of the cited Regulation defines Monetization as a privative function of the BCB as the sole issuer of the Boliviano, through which nominal value is granted to Boliviano banknotes and coins for their circulation.

That Articles 4 and 5 of the aforementioned Regulation determine that the authorization of Monetization will be recorded in a Minutes document signed by a Director designated by the BCB Board of Directors, the General Manager, the Treasury Manager, and the Deputy Manager of Monetary Material Operations; and that the GTES will register the monetization of banknotes and coins, accounting for the transfer of the nominal value of each of the denominations of "Monetary Material in Warehouses" to the "Central Vault" account.

That the BCB Regulation on Exchange and Fractioning of Monetary Material has as its object to regulate the exchange and fractioning operations of Boliviano banknotes and/or coins that must be carried out by all financial intermediation entities supervised by the Financial System Supervision Authority.

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That in accordance with Contract SANO - DLABS No. 301/2016, of September 12, 2016, signed between the BCB and the Company MINT OF FINLAND, whose object is the minting of coins to cover the demand of financial intermediation entities and the general public, and establishes among others, the provision of 88 million pieces of Bs5.

That the report BCB-GTES-SAMM-DAMM-INF-2024-117 from the GTES concludes that, with the purpose of satisfying the demand for Bs5 coins from FIEs, responding to the population's fractioning needs, and, in general terms, attending issuance requirements, in conformity with current regulations, the Monetization of Coins of the aforementioned cut is required, being that for this effect, the monetary material to be used will correspond to the unmonetized pieces of the Bs5 cut, which were provided under Contract SANO-DLABS No. 301/2016, amounting to 28 million coins, equivalent to Bs140 million, recommending to the BCB Board of Directors to authorize their monetization and to designate a member of the Board to participate in the Monetization act.

That the report BCB-GAL-SANO-DLBCI-INF-2024-465 from the GAL concludes that the request of the GTES through the technical report BCB-GTES-SAMM-DAMM-INF-2024-117, regarding the Monetization of 28 million pieces of the Bs5 cut, equivalent to Bs140 million, is legally appropriate by virtue of legal provisions, recommending to the BCB Board of Directors to authorize the Monetization of Coins by a simple majority of votes of the members present. Finally, in the exercise of the supervision attribution, it corresponds to the BCB Board of Directors to designate one of its members to participate in the corresponding Monetization act.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the Monetization of Coins of the Bs5 cut, according to the following detail:

Cut	Quantity (Pieces)	Amount (Bs)
Bs5	28,000,000	140,000,000

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Article 2.- Designate Director Miguel Angel Marañón Urquidi to, on behalf of the Board of Directors, participate in the Monetization act of the aforementioned material.

Article 3.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, November 5, 2024.

SIGNED. ROGER EDWIN ROJAS ULO, Gumerindo Héctor Pino Guzmán, Miguel Angel Marañón Urquidi, Víctor Gonzalo Calisaya Gomez.