Regulatory Alerts2005-05-31 | Resolucion 075/2005Added · Updated
Resolution 075/2005
The Central Bank of Bolivia amends Article 5 of the Regulation on the Administration of Monetary Material and Custody of Values to restrict the classification of banknotes as fit or unfit to national currency only. Financial entities are prohibited from mixing fit and unfit national banknotes within the same package, while the classification requirement is explicitly removed for foreign currency banknotes and all coin packages. This resolution takes effect immediately upon approval and mandates the President and General Management to ensure its execution.
BOARD RESOLUTION NO. 075/2005 SUBJECT: MONETARY OPERATIONS MANAGEMENT – MODIFIES ARTICLE 5 OF THE REGULATION ON THE ADMINISTRATION OF MONETARY MATERIAL AND CUSTODY OF VALUES.
HAVING SEEN: Law No. 1670 of October 31, 1995. The Statute of the Central Bank of Bolivia of December 13, 2001. Board Resolution No. 141/2003 of December 9, 2003, which approves the Regulation on the Administration of Monetary Material and Custody of Values. The Report from the Monetary Operations Management STES No. 041/2005 of May 31, 2005. The Report from the Legal Affairs Management SANO No. 133/2005 of June 3, 2005.
CONSIDERING: That according to what is determined in Article 38, subsections a) and c) of Law No. 1670, the Central Bank of Bolivia, within the framework of its functions, in relation to the Financial System, may receive demand and time deposits in national and foreign currency from banks and financial intermediation entities.
That according to Article 4. (Deposits) of the Regulation on the Administration of Monetary Material and Custody of Values, Financial Entities may make cash deposits at the Central Bank of Bolivia in national currency and US dollars in whole packages.
That according to Article 5. (Classification), packages must be classified by the Financial Entity as fit and unfit.
That the Monetary Operations Management, through report STES No. 041/2005, recommends the modification of Article 5. (Classification) of the Regulation on the Administration of Monetary Material and Custody of Values, in which it requests that Financial Entities not classify foreign currency packages as fit or unfit, as it is not the obligation of the Issuing Entity to define any minimum quality level for foreign currency circulation.
That in the opinion of the Legal Affairs Management, there is no legal impediment for the Board of the Issuing Entity to approve the modification of Article 5 of the Regulation on the Administration of Monetary Material and Custody of Values, requested by the Monetary Operations Management.
THEREFORE, THE BOARD OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Modify Article 5 of the Regulation on the Administration of Monetary Material and Custody of Values in the following terms:
SAYS: Article 5. (Classification). Banknote packages must be classified by the Financial Entity as fit and unfit. Packages of banknotes containing mixed fit and unfit banknotes will not be accepted. The classification as fit and unfit does not apply to coin packages.
SHOULD SAY: “Article 5. (Classification). National currency banknote packages must be classified by the Financial Entity as fit and unfit. Packages of banknotes containing mixed fit and unfit banknotes will not be accepted. The classification as fit and unfit does not apply to metallic coin packages nor to foreign currency banknote packages.”
Article 2.- This Resolution shall enter into force on the day of its approval.
Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, June 7, 2005
Juan Antonio Morales A.
Enrique Ackermann A. José Luis Evia V.
Fernando Paz B.
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