Resolution 128/97

BOARD RESOLUTION NO. 128/97
SUBJECT: INTERNATIONAL AFFAIRS - AUTHORIZES INVESTMENTS IN CURRENCIES OF COUNTRIES WITH A MINIMUM RATING OF Aa2 FOR THE RESERVES UNDER ADVISORY CONTRACT WITH DRESDNER BANK AG.

HAVING VIEWED:
Law No. 1670 of October 31, 1995, Chapter II, regarding the functions of the BCB in relation to international reserves. The Regulations for the Administration of International Reserves, approved by Board Resolution No. 080/97 of February 18, 1997. Report SRDE No. 034/97 from the International Affairs Management of July 11, 1997. Report UAJUR No. 284/97 from the Legal Affairs Unit of July 11, 1997.

CONSIDERING:
That Report SRDE No. 034/97 from the International Affairs Management recommends including currencies not considered in subsection d) of Article 9 of the aforementioned Regulations, to allow investments in countries that have a minimum rating of Aa2, exclusively for the monetary reserves under the Advisory Contract with Dresdner Bank AG of July 1, 1997. That the Reserve Administration Committee of the Bank has expressed its conformity with the investment in currencies and markets proposed by the International Affairs Management. That according to Report UAJUR No. 284/97 from the Legal Affairs Unit, there is no legal impediment to proceed with said investments.

//2. B.R. No. 128/97
Therefore,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Authorize investments of the International Monetary Reserves under the Advisory Contract signed with Dresdner Bank AG, until June 30, 1998, in the following additional currencies to those authorized in subsection d) of Article 9 of the Regulations for the Administration of International Reserves, with exchange coverage at the dollar for 75% of the value placed in these currencies:

With Moody's Aa1 rating:

• Belgium
• Denmark
• Ireland
• Norway and
• New Zealand

With Moody's Aa2 rating:

• Australia
• Canada and
• Spain

Article 2.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

15.VII.97

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G.
________________ Edgar Millares A.