Decree No. 2004-731 Establishing the Continuous Interbank Foreign Exchange Market

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DECREE NO. 2004-731 establishing the Continuous Interbank Foreign Exchange Market THE PRIME MINISTER, HEAD OF GOVERNMENT

• Having regard to the Constitution;
• Having regard to Law No. 67-028 of December 18, 1967, as amended by Ordinance No. 73-053 of September 10, 1973, and by Ordinance No. 93-010 of March 30, 1993, concerning the financial relations of the Republic of Madagascar with foreign countries;
• Having regard to Law No. 91-014 of August 12, 1991, concerning the repatriation to Madagascar of assets held abroad by residents, as amended by Law No. 94-020 of December 14, 1994;
• Having regard to Law No. 94-004 of June 10, 1994, establishing the Statutes of the Central Bank, as amended by Law No. 99-015 of August 2, 1999;
• Having regard to Decree No. 72-446 of November 25, 1972, setting forth the implementing provisions of Law No. 67-028 of December 18, 1967;
• Having regard to Decree No. 2004-674 of July 6, 2004, repealing Decree No. 95-082 of January 24, 1995, regulating foreign currency accounts;
• Having regard to Decree No. 2003-007 of January 16, 2003, appointing the Prime Minister, Head of Government;
• Having regard to Decree No. 2003-08 of January 16, 2003, as amended by Decrees No. 2004-001 of January 5, 2004, and No. 2004-680 of July 5, 2004, appointing the members of the Government; On the proposal of the Minister of Economy, Finance and Budget, IN COUNCIL OF GOVERNMENT, HAS DECREED:

Article 1: The Continuous Interbank Foreign Exchange Market is hereby established.

Article 2: The operation of the foreign exchange market is governed by the Market Convention concluded between participating authorized intermediaries and by the Code of Ethics of the Interbank Foreign Exchange Market (MID).

Article 3: The Central Bank of Madagascar is the authority responsible for supervising and ensuring the proper functioning of the Interbank Foreign Exchange Market. It may regulate, by means of instructions, the organization of the Market.

Article 4: The Central Bank of Madagascar is solely authorized to approve the admission of new participants and to impose sanctions for breaches of the Market Convention rules, which may extend up to market exclusion.

Article 5: The Central Bank participates in the MID on a spot basis.

Article 6: The provisions of the Market Convention of May 4, 1994, and its annexes, along with the implementing regulatory texts not contrary to this Decree, remain in force until a new regulatory framework is implemented.

Article 7: All provisions contrary to this Decree are hereby repealed.

Article 8: The implementing provisions of this Decree shall, as necessary, be specified by order of the Minister of Economy and Finance and by instruction of the Central Bank.

Article 9: The Minister of Economy, Finance and Budget is charged with the implementation of this Decree, which shall be published in the Official Journal of the Republic of Madagascar.

Article 10: Due to urgency and in accordance with Article 6 of Ordinance No. 62-041 of September 19, 1962, concerning general provisions of domestic and private international law, this Decree takes immediate effect upon receiving a radio and/or television broadcast publication and posting, independently of its insertion in the Official Journal.

Done at Antananarivo, on July 27, 2004