Regulatory Alerts2019-10-25
Instruction No. 009-DOM/19 on the Mandatory Reserves System
The Central Bank of Madagascar issued Instruction No. 009-DOM/19 to operationalize the mandatory reserves framework by requiring credit institutions to submit reserve declarations to the bank no later than the 10th of each month. The directive mandates that reserves be calculated on month-end (m-1) bases and held for the subsequent month (m), with daily monitoring provisionally based on prior month requirements until declarations are received. It permanently maintains the mandatory reserve coefficient at 13.0%, enters into force on 1 November 2019, and repeals all conflicting prior provisions.
CENTRAL BANK OF MADAGASCAR
DIRECTORATE OF MONETARY OPERATIONS
INSTRUCTION NO. 009-DOM/19 on the Mandatory Reserves 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 establishing the Statutes of the Central Bank of Madagascar,
Having regard to Decree No. 2014-1684 of 29 October 2014 appointing the Governor of the Central Bank of Madagascar,
Having regard to Instruction No. 008-DOM/19 of 25 October 2019 on the general framework governing mandatory reserves,
HEREBY DECIDES
Article 1: Pursuant to Article 6 of Instruction No. 008-DOM/19 of 25 October 2019 on the general framework governing mandatory reserves, credit institutions subject to the requirement to hold mandatory reserves shall submit the related declaration to the BFM no later than the 10th day of the month.
Article 2: In application of Article 7 of the instruction cited in Article 1 above, mandatory reserves shall be calculated based on the calculation bases finalized at the end of the month (m - 1) and shall be held for a period of one month from the 1st to the last business day of month m.
Article 3: Until receipt of the declaration referred to in Article 1, due on the 10th of the month, the daily monitoring of the credit institution's position shall be carried out provisionally based on the required reserves of the previous month. This position shall be adjusted upon receipt of the declaration.
Article 4: With reference to Article 7 of the instruction cited in Article 1 of this document, the mandatory reserve coefficient is maintained at 13.0%.
Article 5: Entry into Force This instruction shall enter into force as of 1 November 2019.
Article 6: Final Provisions All prior provisions contrary to this instruction are hereby repealed and shall remain repealed.
Antananarivo, 25 OCT 2019
(Signature) THE GOVERNOR ALAIN H. RASOLOFONDRAIBE
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