Resolution 142/2007

BOARD RESOLUTION NO. 142/2007

SUBJECT: MONETARY OPERATIONS MANAGEMENT - AUTHORIZES MONETIZATION OF BANKNOTES OF THE "G" SERIES.

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 Issuance, Exchange and Destruction of Monetary Material, approved by Board Resolution No. 108/2001 of October 30, 2001. The Banknote Provision Contract (Additional Series G) SANO No. 114/2006 of October 18, 2006, signed between the BCB and the company Francois Charles Oberthur Fiduciaire. The Addendas SANO No. 110/2007 of September 7, 2007 and SANO No. 177/2007 of November 1, 2007 to modify Contract SANO No. 114/2006. The Reports from the Monetary Operations Management STES No. 126/2007 of November 7, 2007, STES No. 128/2007 and STES No. 510/2007 both dated November 12, 2007. The Reports from the Legal Affairs Management SANO No. 288/2007 of November 9, 2007 SANO No. 290/2007 of November 12, 2007.

CONSIDERING: That Article 1 of Law No. 901 creates the Boliviano as the unit of the monetary system of the Republic, through banknotes and coins that the Central Bank of Bolivia will issue and circulate as legal tender, starting from January 1, 1987. That according to Article 10 of Law No. 1670, the Central Bank of Bolivia exercises exclusively and non-delegably the function of issuing the monetary unit of Bolivia, in the form of banknotes and metallic coins.

That within the framework of contract SANO No. 114/2006 and the addendas SANO No. 110/2007 and SANO No. 177/2007, the Central Bank of Bolivia has received from the company Francois Charles Oberthur Fiduciaire the first receipt of monetary material consisting of 221 boxes with 11,050,000 pieces of the Bs100 denomination.

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

That Article 9 of the Regulation for the Issuance, Exchange and Destruction of Monetary Material establishes that it is the faculty of the BCB Board to authorize the monetization of banknotes.

That the Monetary Operations Management establishes in Reports STES No. 126/2007, STES No. 128/2007 and STES No. 510/2007 that to carry out the distribution of the received monetary material, it recommends the monetization of the banknotes of the "G" series of the Bs100 denomination, delivered in vaults by the supplier company Francois Charles Oberthur Fiduciaire.

That in the opinion of the Legal Affairs Management according to Reports SANO No. 288/2007 and SANO No. 290/2007 there is no legal impediment for the BCB Board, in attention to its faculties and competencies, to approve the monetization of banknotes in the Bs100 denomination.

THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Authorize the monetization of banknotes of the "G" series of the Bs100 denomination according to the following detail:

DENOMINATION NUMBER OF PIECES VALUE IN Bs 100 11,050,000 1,105,000,000.- TOTAL 11,050,000 1,105,000,000.-

Article 2.- Designate the Acting President Gustavo Blacutt to represent the Board in the monetization act of the aforementioned material.

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

La Paz, November 13, 2007

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Gustavo Blacutt Alcalá.

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Hugo Dorado Araníbar Rolando Marín Ibáñez

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Osvaldo Nina Baltazar Ernesto Yánez Aguilar