Regulatory Alerts2024-08-06
Instruction No. 004-DOM/24 repealing Instruction No. 004-DOM/23 of August 8, 2023, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system
The Governor of Banky Foiben'i Madagasikara issued Instruction No. 004-DOM/24 to amend the interest rate corridor system by maintaining its width at 2.00 percentage points and fixing the deposit and marginal lending facility rates at 9.50% and 11.50%, respectively. The directive fully repeals Instruction No. 004-DOM/23 of August 8, 2023, which had previously modified the same framework. This update to Madagascar’s monetary policy instruments enters into force on August 7, 2024.
BANKY FOIBEN'I MADAGASIKARA
DIRECTORATE OF MONETARY OPERATIONS
INSTRUCTION NO. 004-DOM/24 repealing Instruction No. 004-DOM/23 of August 8, 2023, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system.
The Governor of Banky Foiben'i Madagasikara,
Having regard to Law No. 2016-004 of July 29, 2016, supplemented by Law No. 2016-057 of February 2, 2017, establishing the Statutes of the Central Bank of Madagascar,
Having regard to Law No. 2020-011 of September 1, 2020, on banking law,
Having regard to Decree No. 2023-011 of January 10, 2023, repealing the provisions of Decree No. 2019-2069 of November 6, 2019, and appointing the Governor of Banky Foiben'i Madagasikara,
Having regard to Instruction No. 006-DOM/19 of October 25, 2019, on money market instruments,
Having regard to Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system,
DECIDES
Article 1:
This Instruction aims to amend the provisions of Articles 2 and 5 of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system, and to repeal the provisions of Instruction No. 004-DOM/23 of August 8, 2023.
Article 2:
The provisions of Articles 2 and 5 of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system, are amended as follows:
« Article 2 (new): The width of the interest rate corridor is maintained at 2.00 percentage points. »
« Article 5 (new): The rates for standing facilities are set as follows
- Deposit facility rate: 9.50%
- Marginal lending facility rate: 11.50% ».
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Article 3:
Instruction No. 004-DOM/23 of August 8, 2023, repealing Instruction No. 003-DOM/23 of May 9, 2023, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system, is hereby repealed in its entirety.
Article 4:
This Instruction shall enter into force on August 7, 2024.
Antananarivo, August 6, 2024
[Signature and seal]
THE GOVERNOR AIVO HANDRIATIANA ANDRIANARIVELO
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