Follow-up on the 2026 Monetary Program - June

BANCO CENTRAL DE BOLIVIA
FOLLOW-UP ON THE 2026 MONETARY PROGRAM - JUNE

The evaluation of the execution of the Monetary Program carried out by the Central Bank of Bolivia (BCB) shows that in the first half of 2026, there were relevant deviations from what was planned. The contraction of Net Internal Credit (NIC) was significantly lower than anticipated, with a deviation of Bs3,748 million, despite the important contraction observed in the BCB's NIC to the Non-Financial Public Sector. This result is explained by the decrease in unplanned liabilities, highlighting the return of funds to the financial system1 and the total cancellation of the repo with an international operator.

On the other hand, regulation during the period shows that the BCB's actions were consistent with absorbing the inherited monetary surplus and the transition to the New Monetary Policy Framework, while Net International Reserves show an accumulation below what was programmed, mainly due to lower external disbursements.

MONETARY PROGRAM
(Flow in millions of bolivianos)

Item	Prog.	Ene-Jun Exec.	Dif.
MONETARY EMISSION	-971	-542	-429
NET INTERNAL CREDIT (NIC)	-4,969	-1,220	-3,748
NIC of BCB to Non-Financial Public Sector	2,788	-1,505	4,294
NIC of BCB to Financial Sector	5,006	7,125	-2,118
Monetary Regulation	-10,240	-8,974	-1,266
Others1	-2,523	2,135	-4,657
NET INTERNATIONAL RESERVES	3,998	678	-3,320
(In millions of dollars)	443	75	-368

Pro memoria2
Monetary Base -4,544
MN and UFV -10,329

Note: Preliminary information. Figures were calculated according to international methodologies.

1. Includes net medium and long-term external obligations, quasi-fiscal items, and other net accounts of the BCB.
2. Monetary base in national currency and UFV at the end of the period.
   Source: Central Bank of Bolivia

The orientation of monetary policy was reflected in a contraction of the Monetary Base in national currency (MN) superior to Bs10,000 million, which is explained, by origin, mainly by open market operations. Between January and April, a net placement of securities was observed, driven by the expansion and recomposition of the weekly supply and the increase in yield rates. In the last bimester, the orientation of monetary policy was reinforced with the cancellation of credits granted under the solution procedure for the former Fassil Bank, as programmed, and other factors not initially contemplated in the Monetary Program, such as: i) the required cancellation of credits for the liquidation of the FIUSEER Fund (Bs35 million) and of the CPVIS II and CPRO Funds in MN (Bs1,803 million), and ii) the early cancellation of credits with guarantee of resources in foreign currency (FC) from the funds (Bs1,250 million) as part of their adjustment process to exchange position limits.

Consequently, due to the destination of the Monetary Base, a decrease in bank reserves was observed. On this same side, currency in circulation was conditioned by exogenous factors: the social stability observed at the beginning of the year implied a contraction lower than expected, while the social conflicts initiated in May induced a transient increase in the preference for liquidity; after this episode was overcome, currency in circulation resumed its contractive behavior.

Additionally, in the last bimester, the increase in monetary emission responded to the expansion of the percentage of reserve requirements constituted in funds in custody, which allows financial intermediation entities to maintain a higher proportion of their resources in their own vaults without affecting the liquidity of the financial system.

MONETARY BASE BY SOURCE*
(Accumulated flow in millions of bolivianos)

*Includes information in MN and UFV at the end of the period.
OMA: Includes monetary regulation securities placed in auction, money desk, and others. Does not include accrued interest.

• Others: Includes NIC of BCB to Non-Financial Public Sector, equity accounts, and other net accounts.
  Source: Central Bank of Bolivia.

MONETARY BASE BY DESTINATION*
(Accumulated flow in millions of bolivianos)

*Includes information in MN and UFV at the end of the period.
Monetary emission: Includes banknotes and coins in the hands of the public (Currency in Circulation) and banknotes and coins in the vaults of Financial Intermediation Entities (Cash).
Source: Central Bank of Bolivia.

The net absorption of liquidity resources from the financial system did not generate adverse effects on the dynamics of the loan portfolio, as it maintained its growth rate. In effect, the portfolio maintained stable behavior, representing approximately 80% of the system's deposits and registering an annual growth of 3%, similar to that observed at the end of 2025. The increase in deposits contributed in turn to the reduction of currency in circulation.

In this sense, the BCB reaffirms the contractionary orientation of monetary policy to reduce exchange pressures within the framework of the current flexible exchange rate regime. In accordance with the New Monetary Policy Framework, continuous monitoring of the Monetary Base in national currency will be carried out, abandoning the exchange rate as a nominal anchor.

LIQUIDITY MANAGEMENT AND MONETARY POLICY*
(Flow in millions of bolivianos)

*Includes information in MN and UFV at the end of the period.
Monetary regulation: Includes OMA, windows, liquidity credits with fund guarantees, solution procedure credits, credits to BDP, funds, and required reserve in the BCB balance sheet.
Source: Central Bank of Bolivia.

La Paz, July 10, 2026.