CIEX No. 12/2024: Procedures for Depositing US Dollar Cash at the Central Bank of Bolivia

EXTERNAL CIRCULAR La Paz, May 14, 2024 CIEX No. 12/2024 FROM: GENERAL MANAGEMENT TREASURY MANAGEMENT INTERNATIONAL OPERATIONS MANAGEMENT TO: FINANCIAL INTERMEDIATION ENTITIES SUBJECT: DEPOSITS OF US DOLLAR CASH AT THE CENTRAL BANK OF BOLIVIA

Gentlemen:

From this date forward, Financial Intermediation Entities (FIEs) that make deposits of US dollar (USD) banknotes in cash at the Central Bank of Bolivia (BCB) must carry out such operations in accordance with the following provisions:

1. The packages of USD banknotes deposited in cash by FIEs at the BCB for legal reserve purposes for shipment to the Federal Reserve Bank (FRB) must comply with the provisions established in the "Cash Services Procedures Manual" issued by the FRB, depositing them separately as Non-Contaminated and Contaminated.

a) The criteria for classifying USD banknote packages as "contaminated" are as follows: • Prolonged exposure to water or other liquids, resulting in the presence of mold. • Exposure to blood, urine, feces, or any other bodily fluid, including secretion from any body cavity, corpse, or animal. • Exposure to wastewater. • Exposure to any chemical, liquid, or foreign substance that could pose a risk to health or sanitary safety.

These characteristics must be clearly distinguishable and perceptible in each of the banknotes classified as "contaminated," as shown in the following example graphic:

Image of a "contaminated" USD 100 banknote

Those packages of USD banknotes that do not meet the criteria detailed above will be classified as "Non-Contaminated."

b) Depositing FIEs must prepare the USD packages according to the following characteristics:

Presentation of Banknotes For "non-contaminated" and "contaminated" banknotes, the following must be considered: • Banknotes must present the portrait side facing forward. • The orientation of the portrait must be the same. • Banknotes must be presented flat. • Edges and corners must be aligned. • Mutilated banknotes will not be accepted; that is, banknotes damaged to the extent that only half or less of the banknote remains, or alternatively, banknotes whose condition is such that their value is questionable and requires expert valuation before any exchange takes place.

Presentation of Bands For bands of "non-contaminated" and "contaminated" banknotes, the following must be considered: • Each band must contain one hundred (100) banknotes of the same cut or denomination. • Bands must be printed on white paper with colored edges (mustard for USD 100 banknotes, brown for USD 50, lilac for USD 20, yellow for USD 10, red for USD 5, green for USD 2, and light blue for USD 1), to identify the denomination and the amount in USD. • The acronym of the FIE must be printed on one side and at the ends of the band. • The place and date of package formation must be located on each band, in a space visible through the shrink wrap (heat-sealed). • The teller's stamp must be located in the center of the band. • The ink for the acronyms and stamps must be black. • Bands must not contain staples, clips, or adhesive tape. • Each band must be joined on the reverse side of the portrait.

In order to guarantee the integrity of all bundles of banknotes to be sent to the FRB, it is essential that FIEs have packaging bands with a weight of at least one hundred (100) grams per square meter.

Presentation of Packages For packages of "non-contaminated" and "contaminated" banknotes, the following must be taken into account: • Each package must contain one thousand (1,000) banknotes of the same cut or denomination, packaged in ten (10) bands (one hundred banknotes per band). • Packages must not contain clips, staples, or adhesive tape. • Packages must be heat-sealed, showing the FIE's logo on the band. • "Non-contaminated" USD packages will be secured with two (2) elastic bands, located on the sides of each package. • "Contaminated" USD packages will be secured with one elastic band in the center of each package. The FIE that has packages of contaminated USD must fill out the "Detail of Contaminated Currency Deposits" form.

USD banknote packages must be prepared and presented by FIEs following the requirements established in the "Cash Services Procedures Manual" issued by the FRB described above.

The BCB will not be responsible for the preparation of the aforementioned monetary material (MM) nor for prior validation for its shipment to the FRB; the BCB will only be responsible for the transport of this MM to the FRB.

If there are observations from the FRB regarding the sent remittance, due to non-compliance with the provisions of the "Cash Services Procedures Manual" issued by the FRB, resulting in the return of this remittance, or if any anomaly is detected, such as counterfeit banknotes, shortages, among others, the costs or charges incurred will be assumed by the FIE identified as the depositor of the observed packages and will be debited/credited to/from the respective FIE's current account and reserve account or reserve account.

2. For the deposit of packages of USD banknotes in cash at the BCB for legal reserve purposes for shipment to the FRB for transactions with the exterior for imports: • Comply with what is established in point 1. • The FIE must present at the time of deposit the sworn declaration available at the following link (https://www.bcb.gob.bo/?q=content/formatos), which must be signed by the authorized signatures at the BCB of each entity. • The BCB may reject these deposits within the framework of what is established by the FRB. • On the next business day after the availability of funds is confirmed by the FRB, the FIE may request via the BCB's Foreign Exchange Operations System the transfer of funds abroad.

3. The remaining balances in USD banknotes in cash, resulting from financial operations emerging from contracts between the Public Banking Entity (PBE) and the BCB, must be deposited by the PBE in the corresponding account(s) through the Fractional Cash Site located in the BCB's secure environments.

For any inquiries, contact the BCB Treasury Management at phones 2409090 extension 3001, 3002, 3003, 3004, and 3007.

External Circular CIEX No. 7/2024 of February 22, 2024, is hereby repealed.

Sincerely.

DIGITALLY SIGNED DOCUMENT Claudia Fabiola Soruco Carballo INTERNATIONAL OPERATIONS MANAGER Sergio Callisaya Avila TREASURY MANAGER Rubén Gonzalo Ticona Chique GENERAL MANAGER

Validate digital signatures at: validar.firmadigital.bo RGTCH/SCA/CFSC/ssim/rnvq/smma