DIRECTORATE RESOLUTION No. 146/2026

SUBJECT: TREASURY MANAGEMENT – APPROVE THE REGULATION ON MONETIZATION, DISTRIBUTION, DESTRUCTION OF MONETARY MATERIAL AND TREATMENT OF COUNTERFEIT MATERIAL

WHEREAS:

Law No. 1670 of 31 October 1995, of the Central Bank of Bolivia (BCB) and its amendments.

Directorate Resolution No. 94/2018 of 24 July 2018, which approves the Regulation on Monetization, Distribution, Destruction of Monetary Material and Destruction of Counterfeit Material and its amendments.

Directorate Resolution No. 85/2026 of 23 June 2026, which approves the Statute of the BCB.

Report BCB-GTES-SAOMM-DAMM-INF-2026-36 of 12 October 2026 of the Treasury Management (GTES).

Report BCB-GAL-SANO-DLBCI-INF-2026-261 of 12 October 2026 of the Legal Affairs Management (GAL).

CONSIDERING:

That Law No. 1670 in its articles 1 and 3 establishes that the BCB is the sole monetary and exchange authority of the country, with administrative, technical and financial competence and specialized regulatory powers of general application, in the manner and with the scope established in the Law; it formulates policies of general application in monetary, exchange and payment system matters and executes monetary policy.

That the aforementioned Law provides in its articles 10 and 11 that the BCB shall exclusively and non-delegably exercise the function of issuing the monetary unit of Bolivia, which is the Boliviano, in the form of banknotes and metallic coins, which are legal tender means of payment throughout the territory of the Plurinational State with unlimited liberatory power.

That articles 44 and 54 subparagraphs a), m) and o) of Law No. 1670, provide that the highest authority of the BCB is its Directorate, which has the attributions to issue the norms and adopt the general decisions necessary for the BCB to fulfill the functions, competences and powers assigned to it by the Law; to authorize and supervise the printing, issuance, destruction of banknotes, the minting and withdrawal of coins, and to approve,

DIRECTORATE

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amend and interpret the Statute and Regulations of the BCB, by two-thirds of votes of all its members, without the need for any additional administrative act.

That the Regulation on Monetization, Distribution, Destruction of Monetary Material and Destruction of Counterfeit Material has as its object to regulate the monetization, distribution, demonetization, destruction of monetary material and destruction of counterfeit banknotes seized by Financial Intermediation Entities and remitted to the BCB.

That numerals 1), 2), 9) and 22) of article 11 of the Statute of the BCB, determine that the Directorate has attributions to approve the general decisions and issue the norms necessary for the BCB to fulfill the functions, competences and powers assigned to it by the Law; to define the policies of the BCB, specialized regulations of general application and internal norms; as well as to establish administrative, operational and financial strategies of the BCB approving its short and medium term programs; to approve the printing and issuance of banknotes and the minting of coins of the Boliviano and those issued for commemorative purposes, as well as their denominations, dimensions, designs and colors; to approve, amend and interpret the Statute and Regulations of the BCB, by two-thirds of votes of all its members, without the need for an additional administrative act.

CONSIDERING:

That by means of report BCB-GTES-SAOMM-DAMM-INF-2026-36, the GTES concludes that the Regulation on Monetization, Distribution, Destruction of Monetary Material and Destruction of Counterfeit Material requires updating in order to adapt to the new organizational structure of the BCB, improving its wording, structure and content, and also consolidating the amendments in a single normative body which will allow having an updated and comprehensive instrument of more efficient application, its approval by the Directorate being technically viable.

That by means of report BCB-GAL-SANO-DLBCI-INF-2026-261, the GAL concludes that the proposal of the new Regulation on Monetization, Distribution, Destruction of Monetary Material and Treatment of Counterfeit Material is legally viable as it does not violate the current legal system, so it corresponds to the Directorate of the BCB to approve it, in accordance with the provisions of article 54 subparagraphs a), m) and o) of Law No. 1670 and numerals 1), 2), 9) and 22) of article 11 of the Statute of the BCB.

THEREFORE,
THE DIRECTORATE OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

DIRECTORATE

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Article 1. Approve the Regulation on Monetization, Distribution, Destruction of Monetary Material and Treatment of Counterfeit Material, which in Annex forms part of this Directorate Resolution.

Article 2. This Resolution shall enter into force as of its publication.

Article 3. As of the entry into force of this Resolution, Directorate Resolutions No. 94/2018 of 24 July 2018, No. 72/2020 of 4 August 2020, No. 84/2021 of 6 July 2021 and No. 25/2026 of 13 March 2026 are left without effect.

Article 4. The Presidency and the General Management are entrusted with the execution and compliance of this Resolution.

La Paz, 13 October 2026

SIGNED. DAVID IVÁN ESPINOZA TORRICO, Claudia Haydee Pacheco Ayala, Dennise Sussan Martin Alarcón, Walter Fernando Orellana Rocha, Álvaro Alfonso Romero Villavicencio.

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ANNEX

REGULATION ON MONETIZATION, DISTRIBUTION, DESTRUCTION OF MONETARY MATERIAL AND TREATMENT OF COUNTERFEIT MATERIAL

CHAPTER I

PRELIMINARY PROVISIONS

Article 1. (Purpose).- The purpose of this Regulation is to regulate the monetization, distribution, withdrawal from circulation and destruction of monetary material (MM), as well as the destruction of counterfeit material retained by Financial Intermediation Entities (EIF), seized by the competent authorities and remitted to the Central Bank of Bolivia (BCB).

Article 2. (Definitions).- This Regulation shall use the following abbreviations and definitions:

Double Series Banknote: Banknote made up of two fractions from different series, considered an adulterated piece. It lacks legal value and is not eligible for exchange.

Unfit Banknote: Banknote issued by the BCB that retains its two signatures and at least one serial number, but which, in accordance with the Manual for the Selection of Boliviano Banknotes, must be withdrawn from circulation.

Demonetization: Process by which the BCB revokes the liberatory value and legal tender status of a coin or banknote.

Seizure: Act carried out by the competent authority, by which formal possession is taken of counterfeit material or double series banknotes for purposes of investigation or disposal in accordance with applicable regulations.

Counterfeit Material: Boliviano banknotes or coins that are not issued by the BCB, but produced for illicit purposes by third parties, imitating the characteristics and security measures of the original banknotes and coins.

Monetary Material: Banknotes and coins issued by the BCB with liberatory value and legal tender.

Unserviceable Monetary Material: Banknotes or coins issued by the BCB, previously withdrawn from circulation and demonetized, destined exclusively for physical destruction and with no possibility of reincorporation into circulation.

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Monetization: Exclusive function of the BCB as the sole issuer of the Boliviano, through which nominal value is granted to Boliviano banknotes and coins for their placement in circulation.

CHAPTER II

MONETIZATION OF BANKNOTES AND COINS

Article 3. (Authorization of Monetization).- The Board of Directors of the BCB, by express resolution, shall authorize the monetization of MM, based on its availability and the requirements of the EIF, and in accordance with the recommendation of the Treasury Management (GTES).

Article 4. (Record of Monetization).- Monetization shall be carried out in an act with the presence of a Director designated by the Board of Directors of the BCB, the General Manager and the Treasury Manager.

Article 5. (Dissemination).- Prior to the placement in circulation of a new family or series of banknotes or of a new minting of coins that implies modifications in their design, security measures or manufacturing material, the BCB shall disseminate to the general population and to the financial system the main characteristics of the new MM.

CHAPTER III

DISTRIBUTION OF MONETARY MATERIAL

Article 6. (Distribution).-

I. The GTES shall place the MM in circulation through the EIF and the BCB itself.

II. The General Management (GGRAL) shall approve semi-annually the distribution programming of the MM based on a proposal from the GTES, based on the requirements of the public, the availability of denominations in vault and other factors it considers necessary.

Article 7. (Distribution of Banknotes through Automated Teller Machines).-

I. The BCB shall regulate the banknote denominations to be distributed through automated teller machines of the EIF, based on their characteristics.

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II. For control purposes, the EIF shall inform quarterly to the Financial System Supervision Authority (ASFI) the distribution of MM carried out, detailing the denominations in accordance with the provisions of the BCB.

CHAPTER IV

WITHDRAWAL, RENDERING UNUSABLE AND DESTRUCTION OF MM

Article 8. (Withdrawal from Circulation of Unfit MM).-

I. The GTES shall proceed to withdraw from circulation the MM remitted by the EIF once its condition as unfit MM has been verified.

II. The Board of Directors of the BCB may authorize the withdrawal from circulation of MM due to a change of family, series or other consideration.

Article 9. (Rendering Unusable of MM).- The GTES shall proceed with the rendering unusable and demonetization of the MM withdrawn from circulation, for its subsequent destruction.

Article 10. (Destruction of MM).-

I. The GGRAL shall authorize the destruction of the unserviceable MM in accordance with programming prepared by the GTES.

II. The unserviceable MM shall be physically destroyed at BCB facilities.

III. The destruction of unserviceable MM outside BCB facilities must be authorized by the Board of Directors of the BCB.

IV. The procedure for the destruction of MM shall be established by Internal Circular of GGRAL.

CHAPTER V

TRACEABILITY AND CONTROL

Article 11. (Traceability and Control).- The GTES shall maintain control and record mechanisms that allow ensuring the identification, traceability and verification of the MM withdrawn from circulation, rendered unusable or destined for destruction during all stages of the process, in accordance with the procedures approved by GGRAL.

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CHAPTER VI

COUNTERFEIT MATERIAL

Article 12. (Retention and seizure of Counterfeit Material).-

I. The EIF and the BCB shall proceed with the retention and registration of counterfeit material and double series banknotes detected in their operations.

II. The counterfeit material retained by the EIF or the BCB shall be brought to the attention of and remitted to the competent authority in accordance with current regulations for the corresponding investigations.

III. By External Circular of GGRAL, the conditions and operational procedures for the treatment of counterfeit material shall be defined.

Article 13. (Destruction of Counterfeit Material).- The destruction of counterfeit material, as well as the attached documentation remitted to the BCB by the EIF or the competent authority, shall be carried out in accordance with an Internal Circular issued by GGRAL of the BCB.

CHAPTER VII

ADDITIONAL PROVISIONS

First Additional Provision. (Reproduction of Images of MM).- The partial or total reproduction of MM of legal tender shall only be permitted, by any natural or legal person, when:

a) The area of the reproduced material is greater or lesser by at least 50% than the area of the original MM.

b) No legends mentioning the BCB are included.

Second Additional Provision. (Specimens or Samples without Value).- The GTES may provide, as a loan, to banknote printing companies, specimens or samples without value for analysis purposes for the MM contracting and acquisition processes. Any delivery and/or sending of said material must be authorized by the GGRAL.

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