Regulatory Alerts2017-12-19
Instruction No. 005-DOM/2017 on the Implementation of Monetary Policy Instruments of Banky Foiben'i Madagasikara
The Central Bank of Madagascar (Banky Foiben'i Madagasikara) issues this instruction to establish the operational framework and procedures for implementing its monetary policy instruments, including main, fine-tuning, and longer-term liquidity operations, as well as standing facilities and mandatory reserve requirements. The directive defines eligible participants, collateral standards, tender mechanisms, and rate-setting authorities while mandating transparent bidding processes and strict compliance timelines for reserve declarations. It also outlines penalty structures for reserve shortfalls, establishes the policy rate as the minimum rate for main injection operations, and repeals prior conflicting instructions effective January 1, 2018.