Regulatory Alerts2008-11-26 | Resolución 140/2008Added · Updated
Resolution 140/2008
The Board of Directors of the Central Bank of Bolivia amends Articles 13, 19, and 20 of the Foreign Exchange Operations Regulation to allow financial entities with current and reserve accounts at the Central Bank to participate in the Bolsín sessions. The amendments update settlement procedures for foreign currency delivery and extend the deadline for national currency fund provision from 15:30 to 16:30 on the session day, while maintaining a five-business-day suspension penalty for non-compliance.
BOARD RESOLUTION NO. 140/2008 INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES MODIFICATION TO THE FOREIGN EXCHANGE OPERATIONS REGULATION.
HAVING SEEN: 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. Board Resolutions Nos. 144/2002 and 092/2005 of December 20, 2002, and August 9, 2005, respectively. The Report from the International Operations Management (GOI) No. 014/2008 of November 19, 2008. The Report from the Legal Affairs Management (SANO) No. 329/2008 of November 20, 2008.
CONSIDERING: That with Resolution No. 144/2002, the BCB Board approved the Foreign Exchange Operations Regulation. That with Resolution No. 092/2005, a modification was made to the attributions of the Monetary and Exchange Policy Committee.
That the International Operations Management, in its Report GOI No. 014/2008, recommends modifying the Foreign Exchange Operations Regulation so that financial entities that have an account at the BCB can participate in the Bolsín sessions. That according to the Report from the Legal Affairs Management SANO 329/2008, in accordance with the attribution conferred by article 54, subsection o) of Law 1670, the Board is authorized to modify the Regulations of the BCB.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve the modification of articles 13, 19, and 20 of the Foreign Exchange Operations Regulation in the following terms:
SAYS: Article 13.- (Bolsín Participants) Financial entities that maintain a current and reserve account at the BCB may participate in the Bolsín. This participation will be on their own account or on behalf of third parties.
SHOULD SAY: “Article 13.- (Bolsín Participants) Financial entities that maintain a current and reserve account, reserve account, or current account at the BCB may participate in the Bolsín. This participation will be on their own account or on behalf of third parties.”
SAYS: Article 19.- (Delivery of Foreign Currency) On the same date of the Bolsín session, the current and reserve account in national currency of the financial entity will be debited, and on the next business day, the awarded foreign currency will be delivered by crediting their current and reserve account in foreign currency.
SHOULD SAY: “Article 19.- (Delivery of Foreign Currency) On the same date of the Bolsín session, the current and reserve account, reserve account, or current account in national currency of the financial entity will be debited, and on the next business day, the awarded foreign currency will be delivered by crediting their current and reserve account, reserve account, or current account in foreign currency.”
SAYS: Article 20.- (Lack of Fund Provision) In the event that the financial entity does not have the resources in national currency in its current and reserve account until 15:30 hours on the day of the Bolsín session, its request will be rejected and it will be suspended from participating in the Bolsín sessions for five (5) business days.
SHOULD SAY: “Article 20.- (Lack of Fund Provision) In the event that the financial entity does not have the resources in national currency in its current and reserve account, reserve account, or current account until 16:30 hours on the day of the Bolsín session, its request will be rejected and it will be suspended from participating in the Bolsín sessions for five (5) business days.”
Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, November 25, 2008
Gabriel Loza Tellería
Gustavo Blacutt Alcalá Hugo Dorado Araníbar
Rolando Marín Ibáñez Ernesto Yáñez Aguilar
Osvaldo Nina Baltazar
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