July 7, 2023, 3:50 PM
July 7, 2023, 3:50 PM
The Central Bank of Bolivia (BCB) has already published the regulations of Law 1503 on the Purchase of Gold in the domestic market for the strengthening reserves international. Through Board Resolution 096/2023, the BCB approved the regulation consisting of 24 items and that it is the guide of law 1503, considered key for the Government to obtain more dollars to prop up the reserves.
In Money explains to you We detail the regulation and its scope.
-Purchase price. The cost of the purchase will be the result of the premium or discount applied to the international market price.
-Registration of the seller. The BCB will register, for the only time, the individual or legal, public or private seller. For which it will request the respective documentation of the interested parties.
-Origin of gold. For each operation, sellers must make an affidavit about the legitimacy of the product.
-Withholding agents. The BCB will act as a withholding agent and the (institutional) contributions withheld will be made according to the agreement established with Senarecom.
-Mining royalty. Exempt from the application of 40% of the rate of the Mining Royalty is that portion of gold acquired in the domestic market by the BCB, destined to strengthen international gold reserves.
-Export verification service. The BCB is exempt from the payment of 0.05% on the Gross Export Value that Senarecom charges for the verification service. The gold acquired by the Issuing Entity is not intended for commercial operations.
-Amount of sale. The BCB will make purchases in the domestic market from 1,000 grams, in accordance with its monetary program. For lower amounts, sellers may trade freely with other participants in the domestic market.
-Pay. The BCB will pay for the purchase of gold in national currency by issuing checks or transferring it to the seller’s bank account authorized in the national financial system.
-Private and public legal persons. Once registered, when you want to sell you must enter the BCB website, the gold sale request link with your user code and password to fill out the corresponding form.
-Cooperatives and individuals. They must go to the foundry contracted by the Issuing Entity, where bank personnel will record the information on the form assigned for such a case.
Foundry services, sampling, purity analysis and transport to BCB vaults.
to). For the smelting, a company with experience in gold smelting and sampling will be hired, as well as having certified scales.
b). For the purity analysis, the service of a laboratory accredited by Ibmetro will be contracted.
c). For transport, the services of a company specialized in the transport of valuables that has insurance coverage will be hired.
Gold purity limit. The BCB will buy gold with a purity of no less than 65%.
Advance purchase. After receiving the gold, the BCB will give the seller an advance of 90%, which will be determined by multiplying the weight of the bar by the purchase price and purity of the gold.
Final payment. Once the purity of the gold is known, the BCB, within a period not exceeding 48 hours, will cancel the total debt.
Custody. The gold bars acquired will remain in custody in the BCB vault until they are sent for refining. They will be managed by the International Operations Management in coordination with the Treasury Management.
Gold record. Gold purchased in the domestic market will be recorded as an international reserve. Accounting records will be made at different stages of the gold purchase process.
