Regulatory Alerts2022-07-07
Regulation (NAP) – Amendment of Base Rates, Minimum Cash Reserve Coefficient and Issuance of Deposit Certificates
The Central Bank of São Tomé and Príncipe has amended its base rates, raising the reference interest rate to 10.0% and the liquidity facility rate to 10.5%, while increasing the domestic currency minimum cash reserve coefficient from 18% to 28%. The foreign currency reserve coefficient remains unchanged at 21%, and the bank will issue one-month deposit certificates at a variable rate to support monetary policy alignment with fiscal measures. This permanent regulatory standard, effective June 13, 2022, formally revokes prior 2017 and 2020 monetary policy decisions to address elevated domestic inflationary risks.
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