Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 176/2015

SUBJECT: TREASURY MANAGEMENT - APPROVES MODIFICATION TO THE NEW REGULATION ON MONETIZATION, DISTRIBUTION, AND DESTRUCTION OF MONETARY MATERIAL

VISTOS:

• The Political Constitution of the State promulgated on February 7, 2009.
• Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB).
• The Statute of the BCB approved by Board Resolution No. 128/2005 of October 21, 2005 and subsequent modifications.
• Law No. 483 of January 25, 2014 on the Plurinational Notariat.
• The Regulation on Monetization, Distribution, and Destruction of Monetary Material, approved by Board Resolution No. 061/2015 of April 28, 2015 and its subsequent modification.
• The note from the Plurinational Notariat Directorate DNP-U-J.N.E. 162/2015 of August 21, 2015.
• Report BCB-GTES-SOMM-DOMM-INF-2015-11 of September 18, 2015, from the Treasury Management.
• Report BCB-GAL-SANO-INF-2015-393 of September 21, 2015, from the Legal Affairs Management.

CONSIDERING:

• That the Political Constitution of the State establishes in its article 328 that the attributions of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, are to determine and execute monetary policy, execute exchange rate policy, regulate the payment system, authorize the issuance of currency, and administer international reserves.
• That pursuant to articles 1 and 3 of Law No. 1670, the BCB is the sole monetary and exchange rate authority of the country with administrative, technical, and financial competence and specialized normative powers of general application, being empowered to formulate policies in monetary, exchange rate, and payment system matters.
• That the aforementioned Law in its articles 10, 11, 13, and 54, subsections a), o), and m), establishes the functions of the BCB regarding the issuance of banknotes and metallic coins, as well as the attributions of the Board to authorize and supervise the printing, issuance, and destruction of monetary material, being empowered to issue norms and adopt general decisions necessary for its compliance.
• That pursuant to article 30 of Law No. 1670, all financial intermediation and financial service entities, whose operation is authorized by the Superintendence of Banks and Financial Entities, are subject to the normative competence of the BCB, with respect to their relationship as the monetary, exchange rate, and payment system authority.
• That article 67 of the Statute of the Central Bank of Bolivia establishes that the Monetary Operations Management is responsible for establishing the requirements for the acquisition, distribution, destruction, and administration of monetary material.
• That article 26 of the Plurinational Notariat Law establishes that notaries and government notaries will exercise notarial service on facts, acts, and legal transactions in which entities of the central level of the State or the autonomous territorial entities within their jurisdiction intervene, observing the provisions set forth in the aforementioned Law.
• That by Board Resolution No. 065/2015, the Regulation on Monetization, Distribution, and Destruction of Monetary Material was approved, effective from May 4, 2015.
• That the Plurinational Notariat Directorate in note DNP-U-J.N.E. 162/2015 received on September 14, 2015, states that the BCB may contract the notarial services of one or more public notaries in accordance with the Basic Norms of the System for the Administration of Goods and Services (NB SABS).
• That the Treasury Management through Report BCB-GTES-SOMM-DOMM-INF-2015-11 recommends the modification of the Regulation on Monetization, Distribution, and Destruction of Monetary Material, and requests the Legal Affairs Management to perform the corresponding legal analysis.
• That the Legal Affairs Management through Report BCB-GAL-SANO-INF-2015-393 concludes that the modification of the New Regulation on Monetization, Distribution, and Destruction of Monetary Material in the terms expressed in Report BCB-GTES-SOMM-DOMM-INF-2015-11 is legally appropriate, as it is supported by the current legal framework, being the competence of the Board of the Issuing Entity to consider its approval by two-thirds of the votes of all its members, in accordance with subsection o) of article 54 of Law No. 1670 and numeral 29 of article 11 of the BCB Statute.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the Modification of Article 14 (Supervision) of the Regulation on Monetization, Distribution, and Destruction of Monetary Material, according to the following text:

WHERE IT SAYS:

Article 14. (Supervision).
The verification of the monetary material to be destroyed will be carried out by a group composed of the Treasury Manager or an employee of the GTES designated by him, the Submanager of Monetary Material Operations, the Person in Charge of the Unusable Banknotes Area, a representative designated by the General Manager, and the Government Notary. The latter two must supervise the complete destruction process and provide evidence thereof.

In each destruction session, the corresponding Minutes will be drawn up, recording the cuts, number of packages, number of pieces, value of the destroyed material, and the sampling verification of said material. The Minutes will be signed by all participants.

IT MUST SAY:

“Article 14. (Supervision).
The verification of the monetary material to be destroyed will be carried out by a group composed of the Treasury Manager or an employee of the GTES designated by him, the Submanager of Monetary Material Operations, the Person in Charge of the Unusable Banknotes Area, a representative designated by the General Manager, and the Government Notary or a Public Notary within the framework of articles 19 and 20 (subsections c. and d.) of the Plurinational Notariat Law. The latter two must supervise the complete destruction process and provide evidence thereof.

In each destruction session, the corresponding Minutes will be drawn up, recording the cuts, number of packages, number of pieces, value of the destroyed material, and the sampling verification of said material. The Minutes will be signed by all participants.”

Article 2.- This modification will enter into force from the approval of this Resolution.

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

La Paz, September 22, 2015

Marcelo Zabalaga Estrada

//4. B.D. No. 176/2015

Reynaldo Yujra Segales
Abraham Pérez Alandia
Ronald Polo Rivero
Sergio Velarde Vera