Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 157/2017

SUBJECT: TREASURY MANAGEMENT – AUTHORIZES MONETIZATION OF Bs20 BANKNOTES AND Bs2 COINS IN LEGAL TENDER.

VIEWING:

Law No. 901 of November 28, 1986, which creates the "Boliviano" as the legal and mandatory unit of currency.

Law No. 1670 of October 31, 1995.

The Statute of the Central Bank of Bolivia of October 21, 2005.

The Regulation on Monetization, Distribution, and Destruction of Monetary Material, approved by Board Resolution No. 021/2016 of February 2, 2016.

The Contracts for the provision of Boliviano banknotes SANO-DLABS No. 182/2016 of June 8, 2016, and SANO-DLABS No. 300/2016 of September 12, 2016, signed with the company Oberthur Fiduciaire S.A.S. for the printing of Bs20 banknotes and Bs2 coins in legal tender.

The Report from the Monetary Operations Management BCB-GTES-SAMM-DAMM-INF-2017-109 of October 27, 2017.

The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-318 of October 27, 2017.

CONSIDERING:

That Article 1 of Law No. 901 creates the Boliviano as the unit of the State's monetary system, through banknotes and coins that the Central Bank of Bolivia will issue and circulate as a means of legal payment, starting from January 1, 1987.

That according to Article 10 of Law No. 1670, the Central Bank of Bolivia exercises exclusively and non-delegably the function of issuing the monetary unit of Bolivia, in the form of banknotes and metallic coins.

That it is an attribution of the Board of Directors according to Article 54 subsection m) of Law No. 1670 and numeral 11 of Article 11 of the Statute, to authorize and supervise the issuance of banknotes and coins.

That Article 3 of the Regulation on Monetization, Distribution, and Destruction of Monetary Material establishes that it is the faculty of the BCB Board of Directors to authorize the monetization of monetary material based on the reports of the Treasury Management (GTES) and the Legal Affairs Management, in accordance with the issuance or storage requirements determined by GTES.

That in accordance with the Banknote Provision Contracts SANO-DLABS No. 182/2016, and SANO-DLABS No. 300/2016, signed with the company Oberthur Fiduciaire S.A.S., the Central Bank of Bolivia received the batches of Bs20 banknotes and Bs2 coins in legal tender.

That Report BCB-GTES-SAMM-DAMM-INF-2017-89 establishes the need to monetize the total unmonetized monetary material of the Bs20 denomination (11 million pieces) and the Bs2 coins in legal tender (55.14 million pieces) received under contracts SANO-DLABS No. 182/2016 and SANO-DLABS No. 300/2016, equivalent to Bs220 million (Bs20 denomination) and Bs110.28 million (Bs2 denomination).

That in the opinion of the Legal Affairs Management, according to Report BCB-GAL-SANO-DLBCI-INF-2017-318, the request for monetization of Bs20 banknotes and Bs2 coins in legal tender made by GTES is legally appropriate as it does not contravene the current legal framework, being the competence of the Issuer's Board of Directors to authorize it by simple majority of votes of the members present at the respective meeting, in accordance with what is established in Article 24 of the BCB Statute and by virtue of the provisions contained in Law No. 1670.

THEREFORE

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the monetization of Bs20 banknotes and Bs2 coins in legal tender according to the following detail:

DENOMINATION	NO. OF PIECES	VALUE IN Bs.
20	11,000,000	220,000,000.-
2	55,140,000	110,280,000.-
TOTAL	66,140,000	330,280,000.-

Article 2.- Designate Director Ronald Polo to represent the Board of Directors in the act of monetization of the aforementioned material.

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

La Paz, October 31, 2017

Pablo Ramos Sánchez

Luis Baudoin Olea

Ronald Polo Rivero

Abraham Pérez Alandia

Sergio Velarde Vera