Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 161/2017

SUBJECT: TREASURY MANAGEMENT – AUTHORIZES MONETIZATION OF Bs2 LEGAL TENDER COINS REFERENCING THE MARITIME THEME.

VISTOS (VIEWED):

• 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.
• Contracts SANO DLABS No. 421/2016 and SANO DLABS No. 54/2017 of November 16, 2016, and March 13, 2017, for the minting of Bs2 legal tender coins referencing the maritime theme.
• Report from the Monetary Operations Management BCB-GTES-SAMM-DAMM-INF-2017-109 of October 27, 2017.
• Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-318 of October 27, 2017.

CONSIDERANDO (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 legal tender means of 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 Board of Directors of the BCB to authorize the monetization of monetary material based on reports from the Treasury Management (GTES) and the Legal Affairs Management, in accordance with the issuance or storage requirements determined by the GTES.

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• That in accordance with the Coin Minting Contracts SANO-DLABS No. 421/216 and SANO-DLABS No. 54/2017 signed with the company Mennica Polska, the BCB received the entirety of the coins from the cut of Bs2 legal tender coins referencing the maritime theme.
• That Report BCB-GTES-SAMM-DAMM-INF-2017-89 establishes the need to monetize the total amount of unmonetized monetary material from the cut of Bs2 legal tender coins referencing the maritime theme (16.45 million pieces) received under contracts SANO-DLABS No. 421/216 and SANO DLABS No. 54/2017, equivalent to Bs32,900,000 (Thirty-two million nine hundred thousand 00/100 Bolivianos).
• That in the opinion of the Legal Affairs Management according to Report BCB-GAL-SANO-DLBCI-INF-2017-318, the request for monetization of banknotes from the cut of Bs2 legal tender coins referencing the maritime theme made by the GTES is legally appropriate as it does not contravene the current legal framework, being the competence of the Board of Directors of the Issuing Entity 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 coins from the cut of Bs2 legal tender coins referencing the maritime theme according to the following detail:

CUT	NO. OF PIECES	VALUE IN Bs.
2	16,450,000	32,900,000.-
TOTAL	16,450,000	32,900,000.-

Article 2.- Designate Director Ronald Polo to participate, on behalf of the Board of Directors, in the act of monetization of the cited material.

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

La Paz, November 7, 2017

Pablo Ramos Sánchez

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Ronald Polo Rivero
Abraham Pérez Alandia
Sergio Velarde Vera