Regulatory Alerts2021-11-02
Instruction No. 004-DOM/21 amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system and repealing Instruction No. 007-DOM/20 of November 4, 2020
The Central Bank of Madagascar issued Instruction No. 004-DOM/21 to repeal Instruction No. 007-DOM/20 and amend Article 4 of Instruction No. 009-DOM/19 regarding the mandatory reserve system. The amendment establishes a uniform mandatory reserve ratio of 13.0% calculated on both Ariary and foreign currency deposits, referencing the general framework set forth in Instruction No. 008-DOM/19. This directive takes effect immediately for the reserve accumulation period spanning November 3 to November 30, 2021.
CENTRAL BANK OF MADAGASCAR
MONETARY OPERATIONS DIRECTORATE
INSTRUCTION NO. 004-DOM/21 amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system and repealing Instruction No. 007-DOM/20 of November 4, 2020
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. 2019-2069 of November 6, 2019 repealing the provisions of Decree No. 2014-1684 of October 29, 2014 on the appointment of the Governor of the Central Bank of Madagascar and appointing the Governor of the Central Bank of Madagascar (BFM),
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,
HEREBY DECIDES
Article 1:
This Instruction aims to repeal the provisions of Instruction No. 007-DOM/20 of November 4, 2020 and to 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 13.0%. »
Article 3:
Instruction No. 007-DOM/20 of November 4, 2020, amending 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 enters into force and applies from the mandatory reserve accumulation period from November 3 to November 30, 2021.
Antananarivo, November 2, 2021
THE GOVERNOR HENRI EDMOND RABARIJOHN