Regulatory Alerts2003-07-08
Decree No. 2003-781 of July 8, 2003 Authorizing the Issuance of New Types of 10,000 Ariary, 5,000 Ariary and 2,000 Ariary Banknotes by the Central Bank of Madagascar
The Central Bank of Madagascar, pursuant to its Board's April 2003 decision, issues Decree No. 2003-781 to authorize new 10,000, 5,000, and 2,000 ariary banknotes with characteristics detailed in the Annex. The decree mandates an initial issuance date of July 31, 2003, requires mandatory ariary pricing from that date (allowing dual FMG/ariary display until December 31, 2005), and establishes the iraimbilanja as the sole ariary subdivision with specific rounding rules. Furthermore, it ensures that legacy FMG banknotes retain legal tender status until November 30, 2004, mandates ariary denomination for all national currency contracts from January 1, 2005, and sets the transition to book ariary for the same date.
Decree No. 2003-781 of July 8, 2003 authorizing the issuance of new types of banknotes of 10,000 ariary, 5,000 ariary and 2,000 ariary by the Central Bank of Madagascar. (Official Gazette No. 2848 of August 11, 2003, p. 2094)
Article 1. In accordance with the decision of its Board of Directors dated April 30, 2003, the Central Bank of Madagascar shall issue a new type of banknotes with face values of 10,000 ariary (50,000 FMG), 5,000 ariary (25,000 FMG) and 2,000 ariary (10,000 FMG), the characteristics of which are set out in the Annex.
Article 2. The initial issuance date of these banknotes is set at July 31, 2003. This provision shall be announced to the public by the Central Bank of Madagascar through a public notice.
Article 3. The former banknotes of 25,000 FMG issued pursuant to Decree No. 98-421 of June 11, 1998, as well as the banknotes of 10,000 FMG issued pursuant to Decree No. 95-263 of April 4, 1995, shall retain their legal tender status until November 30, 2004. After this date, exchange shall be carried out at the counters of designated credit institutions and financial institutions until December 31, 2005, and at the counters of the Central Bank until December 31, 2009, in accordance with the procedures established by circular of the Governor of the Central Bank.
Article 4. From July 31, 2003 (the issuance date), displaying prices in ARIARY is mandatory. In addition, dual pricing in ARIARY and FMG is permitted until December 31, 2005.
Article 5. The IRAIMBILANJA is the sole subdivision of the ARIARY and equals 1/5 of an ariary. Prices expressed in ariary shall be rounded up to the next iraimbilanja if the first decimal is greater than or equal to half of an iraimbilanja, and rounded down to the lower iraimbilanja if the first decimal is less than half of an iraimbilanja.
Article 6. The transition to book ariary is set for January 1, 2005.
Article 7. From January 1, 2005, contracts and other obligations expressed in national currency shall be mandatorily denominated in ARIARY.
Article 8. Due to urgency and without prejudice to its publication in the Official Gazette, this Decree shall enter into force immediately upon its radio broadcast publication, in accordance with the provisions of Ordinance No. 62-041 of September 19, 1962, regarding general provisions of domestic law and private international law.
Article 9. The Minister of Economy, Finance and Budget, and the Minister of Telecommunications, Posts and Communication are each responsible, within their respective areas, for executing this Decree, which shall be published in the Official Gazette.