Resolution 141/2012

BOARD RESOLUTION NO. 141/2012
SUBJECT: MONETARY OPERATIONS MANAGEMENT - APPROVES MODIFICATIONS TO THE REGULATION 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 Statute of the BCB 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 force since January 2, 2010.
Board Resolution No. 070/2012 of June 13, 2012.
The report from the Monetary Operations Management BCB-GOM-STES-INF-2012 dated June 27, 2012.
The report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-217 of July 12, 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 rules 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 monetary, exchange, and payment system authority.

That article 67 of the Statute of the Central Bank of Bolivia establishes that the Monetary Operations Management is responsible for establishing the requirements for the acquisition, distribution, destruction, and administration of monetary material.

That by Board Resolution No. 070/2012, article 9 of the Regulation on the Monetization, Distribution, and Destruction of Monetary Material was approved to be modified, in force since July 2, 2012.

That the Monetary Operations Management through report BCB-GOM-STES-INF-2012-30 recommends the approval of the modifications to the Regulation on the Monetization, Distribution, and Destruction of Monetary Material of the BCB with the objective that financial entities necessarily dispense banknotes of ten, twenty, fifty, and one hundred Bolivianos in their automated teller machines.

That the Legal Affairs Management through Report BCB-GAL-SANO-INF-2012-217, states that the approval of the modification of the Regulation on the Monetization, Distribution, and Destruction of Monetary Material of the BCB is appropriate since it does not contravene the current legal framework, being the competence of the Board its approval by two-thirds of the votes of all its members, in accordance with what is established in subsection o) of article 54 of Law No. 1670 and article 24 of the Statute of the BCB.

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 automated teller machines)

Financial entities that have automated teller machines with two trays are obligated to distribute banknotes of ten or twenty Bolivianos in one of the trays and of fifty or one hundred Bolivianos, in the other.
Financial entities that have automated teller machines with three trays are obligated to distribute banknotes of ten and twenty Bolivianos, and of fifty or one hundred Bolivianos.
Financial entities that have automated teller machines with four or more trays are obligated to distribute banknotes of ten, twenty, fifty, and one hundred Bolivianos, through all their automated teller machines, in such a way that there are always banknotes of Bolivian denominations in the machines. In sites where financial entities have two or more automated teller machines, they may arrange that one of the machines distributes banknotes of the ten and twenty Bolivian denominations obligatorily, and banknotes of the fifty or one hundred Bolivian denominations alternatively. In the case of airports, land terminals, ports, and border places, financial entities are obligated to distribute in the automated teller machines, banknotes of the ten and twenty Bolivian denominations, and banknotes of the fifty or one hundred Bolivian denominations alternatively.”

SHOULD SAY
“Article 9.- (Distribution of lower denomination banknotes through automated teller machines)

Financial entities that have automated teller machines with two trays are obligated to distribute banknotes of ten or twenty Bolivianos in one of the trays and of fifty or one hundred Bolivianos, in the other.
Financial entities that have automated teller machines with three trays are obligated to distribute banknotes of ten and twenty Bolivianos, and of fifty or one hundred Bolivianos.
Financial entities that have automated teller machines with four or more trays are obligated to distribute, in at least seventy percent of them, banknotes of ten, twenty, fifty, and one hundred Bolivianos. In the rest of the automated teller machines with four or more trays, financial entities are obligated to distribute banknotes of ten, twenty, fifty, or one hundred Bolivianos. Financial entities for control purposes must inform the ASFI in detail the places and the machines in which foreign currency is distributed.

Financial entities must identify in a visible place for the public and their users, the machines that dispense Bolivianos and foreign currency.
The BCB will establish the periodicity and format of the report for control and supervision, by the Authority for the Supervision of the Financial System.”

Article 2.- This Resolution will 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, July 17, 2012

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Marcelo Zabalaga Estrada

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Rafael Boyán Téllez Hugo Dorado Araníbar

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Ernesto Yáñez Aguilar Gustavo Blacutt Alcalá