Resolution 156/2012

BOARD RESOLUTION NO. 156/2012 SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – MODIFIES THE REGULATION FOR THE ADMINISTRATION OF INTERNATIONAL RESERVES.

HAVING SEEN:

The Political Constitution of the State approved by referendum on January 25, 2009, and published on February 7, 2009.

Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).

Law No. 175 of October 11, 2011, which provides for the purchase of gold by the BCB intended for international reserves.

Supreme Decree No. 1167 of March 14, 2012, which regulates Law No. 175 of October 11, 2011.

The Regulation for the Administration of International Reserves approved by Board Resolution No. 075/2012 of June 26, 2012.

The Regulation for the purchase of gold intended for international reserves approved by Board Resolution No. 046/2012 of April 17, 2012.

The Report from the International Operations Management BCB-GOI-SRES-DOI-INF-2012-15 of August 22, 2012.

The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-273 of August 24, 2012.

CONSIDERING:

That Article 328 of the Political Constitution of the State establishes, as one of the attributes of the Central Bank of Bolivia (BCB), in coordination with the economic policy determined by the Executive Branch, the administration of international reserves, constituted by various internationally accepted assets, including gold.

That Law 1670 of October 31, 1995, provides that the BCB will administer and manage its international reserves in the manner it considers most appropriate for the fulfillment of its object and functions and for their adequate safeguarding and security.

That Article 3 of Law No. 175 provides that the contracting of sampling, laboratory testing, transport, and refining services will be determined by the Board of Directors of the Central Bank of Bolivia, being exempt from the application of the Basic Norms of the System for the Administration of Goods and Services.

That Article 8, paragraph III, of the Regulation for the Administration of International Reserves establishes that the percentage of gold abroad and gold purchase or sale operations will be authorized by the BCB Board of Directors through an express resolution.

That Board Resolution No. 046/2012 establishes the characteristics, conditions, and procedures for the purchase of gold bars intended for international reserves and the contracting of an internationally certified company to carry out the sampling process and determine the purity grade of each gold bar.

That the Report from the International Operations Management BCB-GOI-SRES-DOI-INF-2012-15 recommends approving the modification to the Regulation for the administration of international reserves.

That according to the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-273, this Board Resolution does not contravene the current legal framework.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Modify Article 8 of the Regulation for the administration of international reserves in the following aspects:

SAYS

Article 8.- (Gold Reserves) III. The percentage of gold abroad and gold purchase or sale operations will be authorized by the BCB Board of Directors through an express resolution.

SHOULD SAY

“Article 8.- (Gold Reserves) III. The investment limit for gold bars abroad is 100%, and the quantity of gold bars purchased locally, which may remain in the BCB vault, shall be up to 500 kilograms. IV. The purchase of gold required to complete London Good Delivery Bars, resulting from the refining of locally purchased gold, is authorized.”

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

La Paz, August 28, 2012

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Marcelo Zabalaga Estrada

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Rafael Boyán Téllez Hugo Dorado Araníbar

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Gustavo Blacutt Alcalá