Regulatory Alerts2008-02-26 | Resolución 023/2008Added · Updated
Resolution 023/2008: Approval of Investment Guidelines for the Foreign Currency Liquid Asset Requirement Fund (Fondo RAL-ME)
The Board of Directors of the Central Bank of Bolivia approves investment guidelines for the Foreign Currency Liquid Asset Requirement Fund (Fondo RAL-ME), effective July 1, 2008. The fund is restricted to investments in AAA-rated countries and instruments denominated in US dollars, with a portfolio average duration not exceeding 0.8 years and individual security duration capped at 2 years. Strict counterparty and concentration limits are imposed, including a maximum of 40% in banking corporations, 30% in government agencies, and 10% in non-banking corporations, while prohibiting offshore investments, variable interest obligations, and short positions. The resolution also mandates that the delegated administrator must hold a long-term credit rating of at least A- and repeals Resolution 028/2004.
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