Regulatory Alerts2012-03-06 | Resolución 029/2012Added · Updated
Resolution 029/2012
The Central Bank of Bolivia amends Article 9 of its Regulation on the Monetization, Distribution, and Destruction of Monetary Material to mandate that financial institutions distribute ten and twenty Boliviano banknotes in all automated teller machines (ATMs). For locations with two or more ATMs, institutions may designate one machine to distribute fifty or one hundred Boliviano notes alternatively, while sites such as airports, land terminals, ports, and border areas must continue to distribute ten and twenty Boliviano notes alongside fifty or one hundred Boliviano notes alternatively. These modifications enter into force on July 2, 2012.
BOARD RESOLUTION NO. 029/2012 SUBJECT: MONETARY OPERATIONS MANAGEMENT - APPROVES MODIFICATIONS TO THE REGULATION ON THE MONETIZATION, DISTRIBUTION, AND DESTRUCTION OF MONETARY MATERIAL OF THE CENTRAL BANK OF BOLIVIA
SEEING: 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 Statute of the BCB approved by Board Resolution No. 128/2005 of October 21, 2005 and subsequent modifications. The Regulation on the Monetization, Distribution, and Destruction of Monetary Material, approved by Board Resolution No. 117/2009 of October 6, 2009, effective from January 2, 2010. The Report from the Monetary Operations Management GOM-STES-INF-2012-2 of February 16, 2012. The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012 64 of February 17, 2012.
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 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, and payment system matters.
That the aforementioned Law in its articles 10, 11, 13, and 54, subsections a), o), and m), 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.
That pursuant to article 30 of Law No. 1670, all financial intermediation entities and financial services, 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, and payment system authority.
That article 67 of the Statute of the Central Bank of Bolivia establishes that the Monetary Operations Management is responsible for establishing the requirements for the acquisition, distribution, destruction, and administration of monetary material.
That the Monetary Operations Management through Report GOM-STES-INF-2012-2, recommends the approval of the modifications to the Regulation on the Monetization, Distribution, and Destruction of Monetary Material of the BCB with the objective that financial entities necessarily dispense the 50 Bolivianos cut in their automated teller machines.
That the Legal Affairs Management through Report SANO No. 268/2009, states that there is no legal impediment for the Board of the Issuing Entity, in the exercise of its faculties, to consider the modification of the Regulation on the Monetization, Distribution, and Destruction of Monetary Material of the BCB.
THEREFORE, THE BOARD OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Modify article 9 of the Regulation on the Monetization, Distribution, and Destruction of Monetary Material, approved by Board Resolution No. 117/2009 of October 6, 2009, in the following terms:
SAYS: Article 9.- (Distribution of lower denomination banknotes through automated teller machines) Financial entities are obligated to distribute ten and twenty Boliviano banknotes, and fifty or one hundred Boliviano banknotes alternately, through their automated teller machines, in such a way that there are always in all ATMs banknotes of cuts less than one Boliviano.
SHOULD SAY “Article 9.- (Distribution of lower denomination banknotes through automated teller machines)
In sites where financial entities have only one automated teller machine, they are obligated to distribute ten, twenty, fifty, and one hundred Boliviano banknotes, through all their automated teller machines, in such a way that there are always in the ATMs banknotes of Boliviano cuts. In sites where financial entities have two or more automated teller machines, they may provide that one of the ATMs distributes ten and twenty Boliviano banknotes obligatorily, and fifty or one hundred Boliviano banknotes alternately. In the case of airports, land terminals, ports, and border areas, financial entities are obligated to distribute in the automated teller machines, ten and twenty Boliviano banknotes, and fifty or one hundred Boliviano banknotes alternately.”
Article 2.- The modifications established in this Regulation shall enter into force from July 2, 2012.
Article 3. The Presidency and General Management are charged with the execution and compliance of this Resolution.
La Paz, March 6, 2012
Marcelo Zabalaga Estrada
Rafael Boyán Téllez Hugo Dorado Araníbar
Rolando Marín Ibáñez Ernesto Yáñez Aguilar Gustavo Blacutt Alcalá
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