Central Bank of Bolivia

Board of Directors

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BOARD RESOLUTION NO. 019/2018

SUBJECT: TREASURY MANAGEMENT - AMENDS BOARD RESOLUTIONS NO. 149/2017 AND NO. 166/2017.

VIEWED:

• 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 BCB Statute approved by Board Resolution No. 128/2005 of October 21, 2005 and subsequent modifications.
• The Regulation on the Administration of Monetary Material, approved by Board Resolution No. 020/2016 of February 2, 2016 and its modifications.
• The Regulation on the Monetization, Distribution, and Destruction of Monetary Material, approved by Board Resolution No. 021/2016 of February 2, 2016 and its modifications.
• The Report from the Treasury Management BCB-GTES-SAMM-DAMM-INF-2018-10 of January 26, 2018.
• The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2018-17 of January 29, 2018.

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 faculties of general application, being empowered to formulate policies in monetary, exchange rate, and financial intermediation matters.
• That the aforementioned Law in its articles 10, 11, 13, and 54, subsections a), m), and o), 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 the norms and adopt the general decisions necessary for its compliance, being able to approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members.

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//2. B.R. No. 019/2018

• That pursuant to article 30 of Law No. 1670, all financial intermediation and financial services 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 monetary, exchange rate, and payment system authority.
• That article 67 of the Statute of the Central Bank of Bolivia establishes that the Treasury Management is responsible for establishing the requirements for the acquisition, distribution, destruction, and administration of monetary material.
• That the Treasury Management through Report BCB-GTES-SAMM-DAMM-INF-2018-10 recommends the modification of Board Resolutions No. 149/2017 and No. 166/2017, in order to address the observations and requests of the Financial Intermediation Entities referred to the implementation of the application of the "Manual for the Selection of Bolivian Banknotes".
• That the Legal Affairs Management through Report BCB-GAL-SANO-DLBCI-INF-2018-17 concludes that the modifications to Board Resolutions No. 149/2017 and No. 166/2017 in the terms expressed in Report BCB-GTES-SAMM-DAMM-INF-2018-10 are legally appropriate, being the competence of the Board of the Issuing Entity to consider their approval by two-thirds of the votes of all its members, in accordance with what is provided in 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.- Modify article 2 of Board Resolution No. 149/2017 with the following text:

Article 2.

SAYS

This Board Resolution will enter into force from February 5, 2018.

SHOULD SAY

"This Board Resolution will enter into force from March 19, 2018."

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//3. B.R. No. 019/2018

Article 2.- Modify article 2 of Board Resolution No. 166/2017 with the following text:

Article 2.

SAYS

Determine that the modifications to articles 3, 4, 5, 14, 17 of the Regulation on the Administration of Monetary Material provided for by article 1 of Board Resolution No. 150/2017, will enter into force from February 5, 2018.

SHOULD SAY

"Determine that the modifications to articles 3, 4, 5, 14, and 17 of the Regulation on the Administration of Monetary Material provided for by article 1 of Board Resolution No. 150/2017, will enter into force from March 19, 2018."

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

La Paz, January 30, 2018

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Signatures:

• Pablo Ramos Sánchez
• Abraham Pérez Alandia
• Gabriel Herbas Camacho
• Luis Baudoin Olea
• Ronald Polo Rivero
• Sergio Velarde Vera