Resolution 132/2010

BOARD RESOLUTION NO. 132/2010 SUBJECT: MONETARY OPERATIONS MANAGEMENT – AUTHORIZES MONETIZATION OF BANKNOTES FROM THE CUTS OF Bs200, Bs20 AND Bs10.

HAVING SEEN:

Law No. 901 of November 28, 1986, which creates the "Boliviano" as the legal and mandatory unit of currency.

Law No. 1670 of October 31, 1995.

The Statute of the Central Bank of Bolivia of October 21, 2005.

The Regulation on Monetization, Distribution and Destruction of Monetary Material, approved by Board Resolution No. 117/2009 of October 6, 2009.

The Banknote Supply Contract of the "I" Series SANO No. 239/2008 of December 18 2008 signed between the BCB and the company Canadian Bank Note Limited.

The Report from the Monetary Operations Management BCB-GOM-STES-INF-2010-147 of November 17, 2010.

The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2010-378 of November 18 2010.

CONSIDERING:

That Article 1 of Law No. 901 creates the Boliviano as the unit of the State's monetary system, through banknotes and coins that the Central Bank of Bolivia will issue and put circulation as legal tender, starting from January 1, 1987.

That according to Article 10 of Law No. 1670, the Central Bank of Bolivia exercises in an exclusive and non-delegable manner the function of issuing the monetary unit of Bolivia, in the form of banknotes and metallic coins.

That in accordance with the Banknote Supply Contract of Series "I", the Central Bank of Bolivia has received from Canadian Bank Note Limited, the stock of banknotes of said Series amounting to 467 million pieces with a value of Bs36,400,000,000.-.

//2. R.D. No. 132/2010

That it is an attribution of the Board according to article 54 subsection m) of Law No. 1670 and the numeral 11 of Article 11 of the Statute, to authorize and supervise the issuance of banknotes and coins.

That Article 3 of the Regulation on Monetization, Distribution and Destruction of Monetary Material, establishes that it is the faculty of the Board of Directors of the BCB, the authorization of monetization of monetary material based on the reports of the Monetary Operations Management (GOM) and of the Legal Affairs Management in function of the issuance or storage requirements determined by the GOM.

That Report BCB-GOM-STES-INF-2010-147 establishes that considering the estimates of the duration of the banknotes of series "H" and in function of the requirements of storage of monetary material, it is necessary to monetize the banknotes of series "I" of Bs200, Bs20 and Bs10 delivered in vault by the provider Canadian Bank Note Limited.

That in the opinion of the Legal Affairs Management according to Report BCB-GAL-SANO-INF 2010-378 there is no legal impediment for the Board of Directors of the BCB, in attention to its faculties and competencies, to approve the monetization of banknotes of series "I" of the cuts of Bs200, Bs20 and Bs10.

THEREFORE

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the monetization of banknotes from the cuts of Bs200.-, Bs20 and Bs10.- according to the following detail:

CUT NUMBER OF PIECES VALUE IN Bs. 200.- 40,000,000 8,000,000,000.- 20.- 47,000,000 940,000,000.- 10.- 76,000,000 760,000,000.- TOTAL 163,000,000 9,700,000,000.-

Article 2.- Designate President Marcelo Zabalaga to represent the Board in the act of monetization of the cited material.

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

La Paz, November 23, 2010

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Marcelo Zabalaga Estrada

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Rolando Marín Ibáñez Gustavo Blacutt Alcalá

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Ernesto Yáñez Aguilar Rafael Boyán Téllez