BOARD OF DIRECTORS

BOARD RESOLUTION NO. 168/2024

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT AND MONETARY OPERATIONS MANAGEMENT – APPROVAL OF THE REGULATION FOR THE ADMINISTRATION OF OTHER INTERNATIONAL FINANCIAL ASSETS.

VIEWED:

• The Political Constitution of the State of February 7, 2009.
• Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 1503 of May 5, 2023 on the Purchase of Gold for the Strengthening of International Reserves.
• The BCB Statute approved by Board Resolution No. 095/2022 of October 6, 2022.
• Report BCB-GOI-SRES-DNI-INF-2024-83 dated December 3, 2024 from the International Operations Management (GOI) and the Monetary Operations Management (GOM).
• Report BCB-GAL-SANO-DLBCI-INF-2024-502 dated December 3, 2024 from 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, which, within the framework of the State's economic policy, has the function of maintaining the stability of the internal purchasing power of the currency, to contribute to economic and social development.

That paragraphs 1 and 5 of Paragraph I of Article 328 of the Political Constitution of the State establish that it is the attribution of the BCB, in coordination with the economic policy determined by the Executive Branch, to determine and execute monetary policy and administer International Reserves.

That Article 1 of Law No. 1670 establishes that the BCB is a State institution, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets and with legal domicile in the city of La Paz. It is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized regulatory powers of general application.

That Law No. 1670 in its Articles 3 and 6 provides that the BCB formulates policies of general application in the monetary field for the fulfillment of its objective, for which, through Article 6, the BCB is authorized to execute monetary policy and regulate the amount of money and the volume of credit according to its Monetary Program, being able to this effect, issue, place, and acquire securities and carry out other open market operations, such as all those repurchase operations.

That Article 14 of Law No. 1670 states that the BCB will ensure the strengthening of International Reserves so that they allow the normal functioning of Bolivia's international payments.

That Article 44 of Law No. 1670 establishes that the Highest Authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized regulations of general application, and internal rules.

That subsections a), c), and o) of Article 54 of Law No. 1670 indicate as attributions of the Board of Directors to issue rules and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law; to monitor the execution of monetary, exchange, credit, financial intermediation, and international reserve administration policies and regulations; and to approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act.

That the Final Single Provision of Law No. 1503 states that within the framework of Articles 327 and 328 of the Political Constitution of the State, the BCB, with the objective of complying

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with its constitutional mandate, is authorized to apply what is provided in Law No. 1670, of October 31, 1995, of the Central Bank of Bolivia and its modifications, being this sufficient for the development of its functions, without requiring greater provisions than said Law.

That paragraphs 1) and 3) of Article 5 of the BCB Statute provide that its Board of Directors has normative competence to issue specialized rules in the fields assigned by Law and technical competence for the formulation of policies and the application of instruments that allow it to fulfill its object.

That paragraphs 1), 5), 6), and 30) of Article 10 of the BCB Statute provide that the Board of Directors has the faculty to approve general decisions and issue the rules that are necessary for the Issuing Entity to fulfill the functions, competencies, and powers assigned to it by Law; to approve the policy and rules for Open Market Operations, as well as to monitor their execution; to approve the policies and rules for the administration of International Reserves, to monitor their execution, as well as to approve, modify, and interpret the Statute and regulations, by two-thirds of the votes of all its members, without the need for an additional administrative act.

That Articles 24 and 26 of the Statute provide that Board Resolutions will be adopted by a simple majority of votes of the members present in a meeting. Since 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 Legal Affairs Management. These reports must be sent to the Board of Directors by the General Management with its recommendation.

That report BCB-GOI-SRES-DNI-INF-2024-83 from the GOI and GOM concludes that the proposed Regulation for the Administration of Other International Financial Assets will allow compliance with the mandate established in Law No. 1670, being technically viable, therefore recommending to the BCB Board of Directors its approval.

That report BCB-GAL-SANO-DLBCI-INF-2024-502 from the GAL concludes that the content of the proposed Regulation for the Administration of Other International

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Financial Assets is legally viable, since it does not contravene the legal order, recommending to the BCB Board of Directors its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the "Regulation for the Administration of Other International Financial Assets", in its Three (3) Chapters, Eleven (11) Articles, and One (1) Final Provision, which form part of this Resolution as an annex.

Article 2.- This Resolution will enter into force from its approval.

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

La Paz, December 3, 2024

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

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ANNEX

REGULATION FOR THE ADMINISTRATION OF OTHER INTERNATIONAL FINANCIAL ASSETS

CHAPTER I

GENERALITIES

Article 1. (Object)

This Regulation aims to establish guidelines and general rules to carry out financial operations with Other International Financial Assets, which are administered by a Management different from the International Operations Management, provided that they strengthen the liquidity of International Reserves, allowing the normal functioning of Bolivia's international payments.

Article 2. (Scope of Application)

This Regulation will be applied by all public servants of the BCB.

Article 3. (Acronyms)

The acronyms applicable to this Regulation are the following:

a) APEC: Economic Policy Advisory b) BCB: Central Bank of Bolivia c) COMA: Open Market Operations Committee d) CRI: International Reserves Committee e) GAL: Legal Affairs Management f) GOI: International Operations Management g) GOM: Monetary Operations Management h) RI: International Reserves

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Article 4. (Definitions)

International Reserve Assets: Internationally accepted liquid assets as means of payment issued by an entity other than the Bolivian State.

Off-shore: Investments made in jurisdictions outside the investor's fiscal residence.

Other International Financial Assets: Internationally accepted liquid assets of the BCB that are not considered reserve assets.

Market Price: The price at which an asset or security can be bought or sold in international financial markets.

Acquisition Price: The price at which an asset or security was acquired.

CHAPTER II

ADMINISTRATION AND REGISTRATION MANAGEMENT OF OTHER INTERNATIONAL FINANCIAL ASSETS

Article 5. (Administration Management)

I. The CRI, within the framework of the performance analysis of International Reserves and the Balance of Payments, will identify the need to establish policies for their strengthening, and will recommend the change of administration of assets from the GOM to the GOI to strengthen the liquidity of International Reserves.

II. The COMA will issue a statement regarding the availability of the assets recommended by the CRI.

III. Once the requirements are met, the APEC, the GOI, and the GOM will issue the technical recommendation report accompanied by the GAL report for consideration by the BCB Board of Directors, a decision that must be recorded in the Minutes.

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Article 6. (Administration)

With the approval of the Board of Directors, the GOI will be in charge of the execution, registration, and monitoring of operations with Other International Financial Assets and that have as their purpose the strengthening of the liquidity of International Reserves.

Article 7. (Registration and Valuation)

The GOI will register Other International Financial Assets at acquisition price value. In the event that financial operations are carried out abroad with the securities, these will remain in balance sheet accounts.

CHAPTER III

AUTHORIZED OPERATION WITH OTHER INTERNATIONAL FINANCIAL ASSETS

Article 8. (Authorized Operation)

The GOI is authorized to carry out Repo Operations (when the BCB acts as the Reported party) with Other International Financial Assets.

Article 9. (Guidelines for Repo Operations with Other International Financial Assets)

The guidelines for the authorized operation in the preceding article for the purpose of strengthening the liquidity of International Reserves must comply with the following:

a) Currency Financial operations with other international financial assets are authorized in order to obtain liquidity in currencies widely used by central banks; among them, the United States Dollar (USD), Australian Dollar (AUD), Canadian Dollar (CAD), Euro (EUR), Swiss Franc (CHF), British Pound Sterling (GBP), Japanese Yen (JPY), and Chinese Renminbi (CNH/CNY).

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b) Authorized Counterparties When the BCB acts as the Reported party, the country of the head office of the institutions with which financial operations with other international assets can be executed must have a long-term sovereign risk rating equal to or greater than AA- (S&P), AA- (Fitch), or Aa3 (Moody’s).

All operations must be carried out with counterparties that are duly authorized and regulated by the competent financial authorities in their jurisdictions by country of origin, according to the list of authorized counterparties, defined by the GOI.

c) Duration The duration of each operation must not exceed 2 years.

d) Charges The charges, exchange rate variations, and administrative costs that arise from financial operations with other international assets will be assumed by the BCB charged to International Reserves.

e) Restrictions Operations in financial centers classified as off-shore are prohibited.

Article 10. (Control of Guidelines)

The Investment Control Department of the GOI is in charge of controlling compliance with the guidelines of this regulation.

Article 11. (Closing of the operation)

Upon conclusion of the term of execution of the repo operation, the administration of the Other International Financial Assets will return to the GOM.

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FINAL PROVISION

Final Single Provision.

The GOI will inform the BCB Board of Directors at least once every semester about the operations carried out with Other International Financial Assets.