BOARD OF DIRECTORS

BOARD RESOLUTION NO. 159/2024

SUBJECT: TREASURY MANAGEMENT – AUTHORIZE THE MONETIZATION OF MONETARY MATERIAL FROM BATCHES OF Bs10, Bs20, Bs50, AND Bs100.

VIEWED:

• The Political Constitution of the State, dated February 7, 2009.
• Law No. 901 of November 28, 1986, Creating a New Monetary Unit.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• The BCB Statute, approved by 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.
• Board Resolution No. 067/2023 of May 2, 2023, which approves the Regulation on Exchange and Fractioning of the Central Bank of Bolivia.
• Contract SANO - DLABS No. 201/2023 of September 8, 2023, and its modification.
• Technical Report BCB-GTES-SAMM-DAMM-INF-2024-121 of November 14, 2024, issued by the Treasury Management (GTES).
• Report BCB-GAL-SANO-DLBCI-INF-2024-481, dated November 19, 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

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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.

That numeral 4 of Paragraph I of Article 328 of the Political Constitution of the State establishes that it is an attribute 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 mandatory tender.

That Articles 1 and 3 of Law No. 1670 establish that the Issuing Entity is the sole monetary authority of the country, with administrative, technical, and financial competence and specialized regulatory powers; it will formulate policies of general application in monetary, exchange, and payment system matters, for the fulfillment of its object.

That Article 10 of Law No. 1670 provides that the BCB will exercise exclusively and inalienably the function of issuing the monetary unit of Bolivia named the "Boliviano," in the form of banknotes and metallic coins.

That Article 11 of Law No. 1670 provides that the banknotes and coins issued by the BCB are means of payment with 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 subparagraphs a) and m) of Article 54 of Law No. 1670 determine that the BCB Board of Directors has the attribute to issue regulations and adopt general decisions that are 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.

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That numerals 1) and 11) of Article 10 of the BCB Statute provide that the BCB Board of Directors has the attribute to approve general decisions and issue regulations that are 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, according to Regulations when applicable.

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 the 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 which the subject matter of the Resolution corresponds and by a report from the GAL. These reports must be submitted 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. It also establishes that the BCB Board of Directors, through an express Resolution, will authorize the monetization of monetary material based on reports from GTES and GAL, in accordance with the issuance or storage requirements determined by GTES.

That Article 2 of the aforementioned 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 for 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.

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Monetary Material; and that GTES will register the monetization of banknotes and coins, accounting transferring the nominal value of each of the denominations from "Monetary Material in Warehouses" to the "Central Vault" account.

That the Regulation on Exchange and Fractioning of Monetary Material of the BCB has the object of regulating the exchange and fractioning operations of Boliviano banknotes and/or coins that must be carried out by all Financial Intermediation Entities (FIEs) supervised by the Financial System Supervision Authority.

That in report BCB-GTES-SAMM-DAMM-INF-2024-121, GTES concludes that, with the purpose of satisfying the demand of FIEs, responding to the population's exchange and fractioning needs, and attending issuance requirements, in accordance with current regulations, it is necessary to monetize banknotes in batches of Bs10, Bs20, Bs50, and Bs100. For this effect, the monetary material to be used will correspond to the banknote pieces from the NFB within the framework of Contract SANO-DLABS No. 201/2023 and the Amending Contract SANO-DLABS No. 26/2024 signed with the company OBERTHUR FIDUCIAIRE SAS, belonging to the fifth to ninth shipments, a quantity amounting to 44 million pieces of the Bs100 batch (equivalent to Bs4.400 billion), 18.25 million pieces of the Bs50 batch (equivalent to Bs912.5 million), 22.35 million pieces of the Bs20 batch (equivalent to Bs447 million), and 57.2 million pieces of the Bs10 batch (equivalent to Bs572 million); recommending to the BCB Board of Directors to authorize their monetization.

That report BCB-GAL-SANO-DLBCI-INF-2024-481 concludes that the request of GTES through Technical Report BCB-GTES-SAMM-DAMM-INF-2024-121, regarding the monetization of 44 million pieces of the Bs100 batch (Bs4.400 billion); 18.25 million pieces of the Bs50 batch (Bs912.5 million); 22.35 million pieces of the Bs20 batch (Bs447 million), and 57.2 million pieces of the Bs10 batch (Bs572 million), is legally appropriate by virtue of the legal provisions contained in the Political Constitution of the State, Articles 1 and 3 of Law No. 901, Law No. 1670, and the BCB Statute; recommended to the BCB Board of Directors to authorize the monetization of banknotes by a simple majority of votes of the members present within the framework of what is provided in Articles 3 and 4 of the Regulation on Monetization, Distribution, Destruction of Monetary Material, and Destruction of Counterfeit Material, in conformity with Paragraph I of Article 24 and Article 26 of the BCB Statute. Finally, in the exercise of the supervision attribute

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corresponding to the BCB Board of Directors, it is responsible for designating 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 banknotes in the batches of Bs10, Bs20, Bs50, and Bs100, according to the following detail:

Batch	Quantity (Pieces)	Amount (Bs)
Bs100	44,000,000	4,400,000,000
Bs50	18,250,000	912,500,000
Bs20	22,350,000	447,000,000
Bs10	57,200,000	572,000,000

Article 2.- Designate Acting Director Víctor Gonzalo Calisaya Gomez to participate, on behalf of the Board of Directors, in the monetization act of the aforementioned material.

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

La Paz, November 20, 2024

SIGNED. ROGER EDWIN ROJAS ULO, Gumercindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulert, Miguel Angel Marañón Urquidi, Víctor Gonzalo Calisaya Gomez.