Regulatory Alerts2009-08-05
Instruction No. 003-DCR/09 of August 5, 2009 on Central Bank Interventions in the Money Market
The Governor of the Central Bank of Madagascar issued Instruction No. 003-DCR/09 on August 5, 2009 to regulate central bank interventions in the money market by standardizing refinancing operations and liquidity take-backs. The directive mandates that credit institutions utilize positive and negative tenders, as well as securities sales, to conduct repo and reverse repo transactions backed exclusively by Treasury Bills or eligible negotiable securities. It establishes precise rate margins relative to the policy rate, defines irrevocable submission and adjudication procedures, and specifies how marginal tranches are allocated and settled, thereby repealing prior contradictory monetary instructions.
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