Resolution 070/2012

BOARD RESOLUTION NO. 070/2012
SUBJECT: MONETARY OPERATIONS MANAGEMENT - APPROVES MODIFICATIONS TO THE REGULATIONS ON THE MONETIZATION, DISTRIBUTION, AND DESTRUCTION OF MONETARY MATERIAL OF THE CENTRAL BANK OF BOLIVIA.

VIEWED:
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 BCB Statute 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, in effect from January 2, 2010.
Board Resolution No. 029/2012 of March 6, 2012.
The requests from the Association of Private Banks of Bolivia (ASOBAN) of June 5, 2012 and from the Association of Entities Specialized in Microfinance (ASOFIN) of April 2, 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 the monetary, exchange, and payment system authority.

That by Board Resolution No. 029/2012, it was approved to modify article 9 of the Regulation on the Monetization, Distribution, and Destruction of Monetary Material, in effect from July 2, 2012.

That ASOBAN and ASOFIN, through notes of June 5, 2012 and April 2, 2012, respectively, request to extend the deadline established in article 2 of Board Resolution No. 029/2012 to allow for the gradual configuration of ATMs, considering that there are two-tray ATMs in which the application of the aforementioned Resolution may not be possible.

THEREFORE,
THE BOARD OF DIRECTORS 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 ATMs)
In sites where financial entities have only one ATM, they are obligated to distribute ten, twenty, fifty, and one hundred Boliviano banknotes through all their ATMs, in such a way that there are always Boliviano denomination banknotes in the ATMs.

In sites where financial entities have two or more ATMs, they may arrange for one of the ATMs to distribute ten and twenty Boliviano denomination banknotes obligatorily, and fifty or one hundred Boliviano denomination banknotes alternatively.

In the case of airports, land terminals, port terminals, and border areas, financial entities are obligated to distribute in ATMs, banknotes of the ten and twenty Boliviano denominations, and banknotes of the fifty or one hundred Boliviano denominations alternatively.

SHOULD SAY
“Article 9.- (Distribution of lower denomination banknotes through ATMs) Financial entities that have two-tray ATMs are obligated to distribute ten or twenty Boliviano banknotes in one of the trays and fifty or one hundred Boliviano banknotes, in the other.

Financial entities that have three-tray ATMs are obligated to distribute ten and twenty Boliviano banknotes, and fifty or one hundred Boliviano banknotes.

Financial entities that have four or more tray ATMs are obligated to distribute ten, twenty, fifty, and one hundred Boliviano banknotes, through all their ATMs, in such a way that there are always Boliviano denomination banknotes in the ATMs.

In sites where financial entities have two or more ATMs, they may arrange for one of the ATMs to distribute ten and twenty Boliviano denomination banknotes obligatorily, and fifty or one hundred Boliviano denomination banknotes alternatively.

In the case of airports, land terminals, port terminals, and border areas, financial entities are obligated to distribute in ATMs, banknotes of the ten and twenty Boliviano denominations, and banknotes of the fifty or one hundred Boliviano denominations alternatively.”

Article 2.- This Resolution shall enter into force on September 1, 2012.

Article 3. The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, June 13, 2012

---

Marcelo Zabalaga Estrada

_______________________ _______________________ Rafael Boyán Téllez Hugo Dorado Araníbar _______________________ Rolando Marín Ibáñez Ernesto Yáñez Aguilar Gustavo Blacutt Alcalá