Regulatory Alerts2005-03-15
Instruction No. 01-CR/05 of March 15, 2005 on the Mandatory Reserves System
The Central Bank issued Instruction No. 01-CR/05 to enhance banking liquidity control by excluding bank cash holdings from mandatory reserve calculations. The directive mandates that credit institutions maintain a minimum 15% reserve ratio on resident and non-resident deposits denominated in Ariary or foreign currencies, calculated monthly based on daily balances. Institutions failing to meet these requirements by the 15th of each month face automatic default interest at the 2-to-10-day repurchase rate plus five percentage points, with all prior directives repealed effective March 15, 2005.
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