Regulatory Alerts2025-05-08
Instruction No. 005-DOM/25 of May 6, 2025 Amending Certain Provisions of Instruction No. 003-DOM/25 on the BFM Policy Rate and Interest Rate Corridor System
The Governor of Banky Foiben'i Madagasikara issued Instruction No. 005-DOM/25 on May 6, 2025, amending Article 6 of the April 28, 2025 directive to fix the policy rate at 12.00%, the deposit facility rate at 11.00%, and the marginal lending facility rate at 13.00%. This adjustment establishes a precise interest rate corridor that tightens the spread between borrowing and deposit costs, directly guiding short-term money market operations. The amended provisions supersede all contrary rules and take effect on May 7, 2025.
BANKY FOIBEN'I MADAGASIKARA
DIRECTORATE OF MONETARY OPERATIONS
INSTRUCTION NO. 005-DOM/25 amending certain provisions of Instruction No. 003-DOM/25 of April 28, 2025 on the policy rate of Banky Foiben'i Madagasikara and the interest rate corridor system
The Governor of Banky Foiben'i Madagasikara,
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 Banky Foiben'i Madagasikara,
Having regard to Instruction No. 006-DOM/19 of October 25, 2019 on money market instruments, amended and supplemented by Instruction No. 003-DOM/24 of February 2, 2024, the provisions of which were amended by Instruction No. 004-DOM/25 of April 28, 2025,
Having regard to Instruction No. 003-DOM/25 of April 28, 2025 on the policy rate of Banky Foiben'i Madagasikara and the interest rate corridor system.
DECIDES
Article 1:
This Instruction aims to amend the provisions of Article 6 of Instruction No. 003-DOM/25 of April 28, 2025 on the policy rate of Banky Foiben'i Madagasikara and the interest rate corridor system.
Article 2:
The provisions of Article 6 of Instruction No. 003-DOM/25 of April 28, 2025 on the policy rate of Banky Foiben'i Madagasikara and the interest rate corridor system are amended as follows:
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Article 6 (new): The level of the policy rate and permanent facility rates are set as follows:
- Policy rate: 12.00%
- Deposit facility rate: 11.00%
- Marginal lending facility rate: 13.00%.
Article 3:
All provisions contrary to this Instruction are hereby repealed.
Article 4:
This Instruction shall enter into force as of May 7, 2025.
Antananarivo, on MAY 6, 2025
[Signature and seal]
THE GOVERNOR Aivo H. ANDRIANARIVELO
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