Regulatory Alerts2021-08-06
Instruction No. 002-DOM/21 repealing Instruction No. 001-DOM/21 of 7 May 2021 and amending certain provisions of Instruction No. 007-DOM/19 of 25 October 2019 on the interest rate corridor system
The Governor of the Central Bank of Madagascar issued Instruction No. 002-DOM/21 to fully repeal Instruction No. 001-DOM/21 of 7 May 2021 and amend Article 5 of Instruction No. 007-DOM/19 of 25 October 2019 governing the interest rate corridor system. The amendment establishes a deposit facility rate of 2.80% and a marginal lending facility rate of 7.20%, directly adjusting the central bank's permanent monetary policy rates. This directive takes immediate effect upon signature to recalibrate the national interest rate corridor in line with current monetary policy objectives.
[LOGO]
CENTRAL BANK OF MADAGASCAR
MONETARY OPERATIONS DEPARTMENT
INSTRUCTION NO. 002-DOM/21 repealing Instruction No. 001-DOM/21 of 7 May 2021 and amending certain provisions of Instruction No. 007-DOM/19 of 25 October 2019 on the interest rate corridor system
The Governor of the Central Bank of Madagascar,
Having regard to Law No. 2016-004 of 29 July 2016, supplemented by Law No. 2016-057 of 2 February 2017 on the Statutes of the Central Bank of Madagascar,
Having regard to Law No. 2020-011 of 1 September 2020 on banking law,
Having regard to Decree No. 2019-2069 of 6 November 2019 repealing the provisions of Decree No. 2014-1684 of 29 October 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 25 October 2019 on money market instruments,
Having regard to Instruction No. 007-DOM/19 of 25 October 2019 on the interest rate corridor system,
DECIDES
Article 1:
This Instruction aims to repeal the provisions of Instruction No. 001-DOM/21 of 7 May 2021 and amend the provisions of Article 5 of Instruction No. 007-DOM/19 of 25 October 2019 on the interest rate corridor system.
Article 2:
The provisions of Article 5 of Instruction No. 007-DOM/19 of 25 October 2019 on the interest rate corridor system are amended as follows:
« Article 5 (new): Permanent facility rates are set as follows
- Deposit facility rate: 2.80%
- Marginal lending facility rate: 7.20% ».
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Article 3:
Instruction No. 001-DOM/21 of 7 May 2021, amending certain provisions of Instruction No. 007-DOM/19 of 25 October 2019 on the interest rate corridor system, is hereby repealed in its entirety.
Article 4:
This Instruction shall enter into force on the date of its signature.
Antananarivo, 06 AUG 2021
[STAMP AND SIGNATURE] THE GOVERNOR HENRI EDMOND RABARIJOHN
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