Regulatory Alerts2019-10-25
Instruction No. 010-DOM/19 amending certain provisions of Instruction No. 004-DOM/19 of 3 May 2019 establishing the Exchange Platform for Monetary and Interbank Operations
The Central Bank of Madagascar issued Instruction No. 010-DOM/19 to amend specific provisions of its May 2019 directive establishing the Exchange Platform for Monetary and Interbank Operations. The amendment establishes a strict claims procedure for credit institutions disputing monetary policy tender results, permanent facility requests, or interbank exchanges, mandating initial notification via telephone, electronic messaging, or fax followed by written confirmation within one business day. It further clarifies that tender parameters, including indicative transaction amounts, settlement and maturity dates, and bid deadlines, are published in the POMI system on the day of announcement, with the directive entering into force on 1 November 2019.
CENTRAL BANK OF MADAGASCAR MONETARY OPERATIONS DIRECTORATE
Instruction No. 010-DOM/19 amending certain provisions of Instruction No. 004-DOM/19 of 3 May 2019 establishing the Exchange Platform for Monetary and Interbank Operations
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 Decree No. 2014-1684 of 29 October 2014 on the appointment of the Governor of the Central Bank of Madagascar;
Having regard to Instruction No. 004-DOM/19 of 3 May 2019 establishing the Exchange Platform for Monetary and Interbank Operations;
Having regard to Instruction No. 006-DOM/2019 of 25 October 2019 on money market instruments;
Having regard to Instruction No. 007-DOM/2019 of 25 October 2019 on the interest rate corridor system.
DECIDES
Article 1: This Instruction aims to amend the provisions of Article 14, as well as those of Annex I of Instruction No. 004-DOM/19 of 3 May 2019 establishing the Exchange Platform for Monetary and Interbank Operations.
Article 2: The provisions of Article 14 of Instruction No. 004-DOM/19 of 3 May 2019 establishing the Exchange Platform for Monetary and Interbank Operations are amended as follows:
« Article 14 (new): Any claim submitted by a credit institution regarding the processing of a monetary policy tender operation, a permanent facility request, or interbank exchanges shall be addressed to BFM by telephone, electronic messaging, or fax as soon as the results of a monetary policy tender operation are published, or as soon as RTGS reopens in the case of a permanent facility request or interbank exchanges.
No claim shall be accepted beyond the day following the settlement date.
This claim must be confirmed on the same day or at the latest the following day, by any method leaving a written record. »
P.O. Box 550 Antananarivo (101) – Madagascar ■ Tel. (261) 20 22 217 51/ 20 22 234 65 ■ Fax (261) 20 22 345 32 E-mail: banque-centrale@bfm.mg ■ Website: www.banque-centrale.mg
Article 3: Paragraphs 1 and 2 of Annex I to Instruction No. 004-DOM/19 of 3 May 2019 establishing the Exchange Platform for Monetary and Interbank Operations are amended as follows:
« ANNEX I PROCEDURES AND CONDITIONS FOR SUBMITTING BIDS TO MONETARY POLICY TENDERS Launch of monetary policy tenders: The characteristics of monetary policy tenders are available in the POMI system on the same day they are announced by BFM.
To this end, the following are disseminated to participants:
- the amount to be deducted or injected. This amount is announced for informational purposes only; BFM reserves the right to modify the awarded amount;
- the settlement date and the maturity date of the operation;
- the deadline date and time for receipt of bids.
An alert email is sent to credit institutions for confirmation. (...) »
The remainder remains unchanged.
Article 4: This Instruction shall enter into force as of 1 November 2019.
Antananarivo, 25 OCT 2019
THE GOVERNOR ALAIN H. RASOLOFONDRAIBE
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