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.
[LOGO: BANKY FOIBEN'I MADAGASIKARA]
MONETARY OPERATIONS DIRECTORATE
INSTRUCTION NO. 005-DOM/17 on the Implementation of Monetary Policy Instruments of Banky Foiben’i Madagasikara
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 Decree No. 2014-1684 of October 29, 2014, appointing the Governor of the Central Bank ;
DECIDES
TITLE I: General Provisions
Article 1: Purpose
This Instruction sets out the procedures for implementing the monetary policy instruments of Banky Foiben’i Madagasikara, hereinafter referred to as BFM.
Article 2: Definitions
For the purposes of this Instruction, the following terms shall mean