Regulatory Alerts2022-08-02
Instruction No. 003-DOM/22 repealing Instruction No. 002-DOM/22 of May 3, 2022 and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system
The Central Bank of Madagascar issued Instruction No. 003-DOM/22 to amend the interest rate corridor system established by Instruction No. 007-DOM/19 and to fully repeal Instruction No. 002-DOM/22. The directive sets the width of the interest rate corridor at 2.00 percentage points and establishes the deposit facility rate at 6.90% and the marginal lending facility rate at 8.90%. This measure takes effect on August 3, 2022, thereby updating the monetary policy framework's key interest rate parameters.
CENTRAL BANK OF MADAGASCAR
DIRECTORATE OF MONETARY OPERATIONS
INSTRUCTION NO. 003-DOM/22 repealing Instruction No. 002-DOM/22 of May 3, 2022 and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system
The Governor of the Central Bank of Madagascar,
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. 2019-2069 of November 6, 2019, repealing the provisions of Decree No. 2014-1684 of October 29, 2014 on the appointment of the Governor of the Central Bank of Madagascar and appointing the Governor of the Central Bank of Madagascar,
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. 002-DOM/22 of May 3, 2022.
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 set at 2.00 percentage points. »
« Article 5 (new): The rates for standing facilities are set as follows
- Deposit facility rate: 6.90%
- Marginal lending facility rate: 8.90% »
Article 3:
Instruction No. 002-DOM/22 of May 3, 2022, amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system and repealing Instruction No. 001-DOM/22 of February 1, 2022, is hereby repealed in its entirety.
Article 4:
This Instruction shall enter into force as of August 3, 2022.
Antananarivo, August 2, 2022
THE GOVERNOR Henri Edmond RABARIJOHN