Regulatory Alerts2024-02-07
Instruction No. 001-DOM/24 amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system and repealing Instruction No. 002-DOM/23 of April 26, 2023
The Central Bank of Madagascar issued Instruction No. 001-DOM/24 to repeal Instruction No. 002-DOM/23 and amend Article 4 of Instruction No. 009-DOM/19 regarding the mandatory reserve system. The amendment establishes a uniform mandatory reserve ratio of 12.00% applicable to both Ariary and foreign currency deposits, referencing Article 7 of the general framework instruction. This directive supersedes previous reserve requirements and officially takes effect on February 7, 2024.
CENTRAL BANK OF MADAGASCAR
DIRECTORATE OF MONETARY OPERATIONS
INSTRUCTION NO. 001-DOM/24 amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system and repealing Instruction No. 002-DOM/23 of April 26, 2023
The Governor of the Central Bank of Madagascar,
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 the Central Bank of Madagascar,
Having regard to Instruction No. 008-DOM/19 of October 25, 2019 on the general framework governing mandatory reserves,
Having regard to Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system,
DECIDES
Article 1:
This Instruction aims to repeal the provisions of Instruction No. 002-DOM/23 of April 26, 2023 and amend the provisions of Article 4 of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system.
Article 2:
The provisions of Article 4 of Instruction No. 009-DOM/19 of October 25, 2019 on 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 on the general framework governing mandatory reserves, the mandatory reserve ratio calculated on deposits in Ariary and foreign currency is set at 12.00%. »
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Article 3:
Instruction No. 002-DOM/23 of April 26, 2023, which repealed Instruction No. 004-DOM/21 of November 2, 2021 and amended certain provisions of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system, is hereby repealed in its entirety.
Article 4:
This Instruction shall enter into force as of February 7, 2024.
Antananarivo, January 29, 2024
[Signature]
THE GOVERNOR AIVO HANDRIATIANA ANDRIANARIVELO
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