Regulatory Alerts2024-11-05
Instruction No. 005-DOM/24 of November 4, 2024, amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019, on the mandatory reserve system and repealing Instruction No. 001-DOM/24 of January 29, 2024
The Governor of the Central Bank of Madagascar issued Instruction No. 005-DOM/24 to repeal Instruction No. 001-DOM/24 and amend the mandatory reserve system regulations. The directive establishes a new mandatory reserve coefficient of 15.00% for customer deposits held in both Ariary and foreign currencies by credit institutions. This instruction officially entered into force on November 6, 2024.
[Logo: BANKY FOIBEN'I MADAGASIKARA]
DIRECTION OF MONETARY OPERATIONS
INSTRUCTION NO. 005-DOM/24 amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019, regarding the mandatory reserve system and repealing Instruction No. 001-DOM/24 of January 29, 2024
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. 008-DOM/19 of October 25, 2019, regarding the general framework governing mandatory reserves,
Having regard to Instruction No. 009-DOM/19 of October 25, 2019, regarding the mandatory reserve system,
DECIDES
Article 1:
The purpose of this instruction is to repeal the provisions of Instruction No. 001-DOM/24 of January 29, 2024, and to amend the provisions of Article 4 of Instruction No. 009-DOM/19 of October 25, 2019, regarding the mandatory reserve system.
Article 2:
The provisions of Article 4 of Instruction No. 009-DOM/19 of October 25, 2019, regarding the mandatory reserve system, are amended as follows:
« Article 4 (new): With reference to Article 7 of Instruction No. 008-DOM/19 of October 25, 2019, regarding the general framework governing mandatory reserves, the mandatory reserve coefficient calculated on customer deposits in Ariary and foreign currencies of credit institutions subject to this regulation is set at 15.00%. »
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Article 3:
Instruction No. 001-DOM/24 of January 29, 2024, which repealed Instruction No. 002-DOM/23 of April 26, 2023, and amended certain provisions of Instruction No. 009-DOM/19 of October 25, 2019, regarding the mandatory reserve system, is repealed in all its provisions.
Article 4:
This instruction shall enter into force as of November 6, 2024.
Antananarivo, November 4, 2024
[Signature]
THE GOVERNOR AIVO HANDRIATIANA ANDRIANARIVELO
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