Instruction No. 002-DOM/24 amending certain provisions of Instruction No. 004-DOM/19 of May 3, 2019 establishing the Platform for Monetary and Interbank Operations

CENTRAL BANK OF MADAGASCAR

MONETARY OPERATIONS DIRECTORATE

Instruction No. 002-DOM/24 amending certain provisions of Instruction No. 004-DOM/19 of May 3, 2019 establishing the Platform for Monetary and Interbank Operations

The Second Vice-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 Decree No. 2022-632 of May 4, 2022 appointing the two (2) Vice-Governors of the Central Bank of Madagascar;

Having regard to Instruction No. 004-DOM/19 of May 3, 2019 establishing the Platform for Monetary and Interbank Operations;

Having regard to Instruction No. 006-DOM/19 of October 25, 2019 on money market instruments.

DECIDES

Article 1: This Instruction aims to amend the provisions of Article 9 of Instruction No. 004-DOM/19 of May 3, 2019 establishing the Platform for Monetary and Interbank Operations and Annex I.

Article 2: The provisions of Article 9 of Instruction No. 004-DOM/19 of May 3, 2019 regarding the establishment of the platform for monetary and interbank operations are amended as follows:

« Article 9 (new): PERMANENT FACILITY REQUESTS* Permanent facility requests are submitted online via the POMI system. The permanent facility window is open from 12:00 to 15:30, except in exceptional circumstances. The time displayed in POMI shall serve as the reference for processing any permanent facility request.

A credit institution may, at any time before the window closing time, modify a request that has not yet been validated. As confirmation, the credit institution shall transmit to BFM the information regarding the permanent facility request via electronic mail.»

Article 3: Annex I to Instruction No. 004-DOM/19 of May 3, 2019 establishing the Platform for Monetary and Interbank Operations is amended as follows:

« ANNEX I

SUBMISSION PROCEDURES AND CONDITIONS FOR MONETARY POLICY TENDER CALLS

Launch of monetary policy tender calls: The characteristics of monetary policy tender calls 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• the amount to be withdrawn or injected. This amount is announced for indicative purposes; 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.

Preliminary access verification: To verify the operational status of their POMI access, submitting credit institutions must log in no later than 30 minutes before the submission deadline and commit to remaining connected until that deadline.

Connection procedures: Each submitter may establish only one connection at a time to the POMI system, using the same account.

Submission schedule: A submitter may, at any time before the submission deadline, modify a submission that has not yet been validated.

Submissions must be received before the deadline, i.e., at 10:00 (for normal tender calls) or 14:00 (for fast tender calls) as indicated in the operation announcement. The authoritative time is the arrival time of submissions at BFM as displayed in POMI. Therefore, the time indicated by the internal clock of the workstation used by the credit institution cannot be used as proof.

If a credit institution has not entered any bids before the deadline, BFM considers that it does not wish to participate in the tender call. After the deadline, no bids will be considered.

Submission conditions: The transmission of bids shall be carried out in accordance with the instructions described in the online user manual.

Bids shall be expressed in accordance with the provisions of the Instruction on the implementation of monetary policy instruments in force and according to the characteristics of the announced tender operation.

The maximum number of authorized bids is limited to five (5) per eligible participant.

Submissions to tender calls are irrevocable.

The eligible credit institution(s) must indicate in its/their submission:

• the submitted amount;
• the proposed rate

In case of liquidity injection:

• the type, reference, and maturity;
• the number and amount of securities pledged;

Confirmation: As confirmation, each credit institution must send, before the submission deadline, via electronic mail to the dedicated address for monetary operations, the characteristics of its bids following the templates in the Instruction on the implementation of monetary policy instruments in force.

Collateral registration: For liquidity injection operations, only credit institutions whose bids have been awarded shall register collateral in POMI. The deadline for collateral validation is 14:00 for the normal tender call procedure and 15:00 for the fast tender call procedure. The authoritative time is the arrival time of collateral at BFM as displayed in POMI. Therefore, the time indicated by the internal clock of the workstation used by the credit institution cannot be used as proof.

Adjudication results: Following adjudication, credit institutions may consult individual results and system-wide banking results in the POMI system.

Upon publication of results, BFM communicates:

• the total amount of bids or requests received;
• the range of proposed rates;
• the number of submitters;
• the total amount of liquidity take-up or allocated refinancing;
• the amount of liquidity take-up or refinancing granted to the credit institution;
• the percentage of bids or requests served for the marginal tranche;
• the weighted average rate of served bids or requests.

Treatment in case of a public holiday: When the maturity date falls on a public holiday, the settlement date is postponed to the next following business day. »

Article 4: The other provisions of Instruction No. 004-DOM/19 of May 3, 2019 establishing the Platform for Monetary and Interbank Operations remain unchanged.

Article 5: This Instruction shall enter into force as of February 7, 2024.

Antananarivo, February 2, 2024

THE SECOND VICE-GOVERNOR AUBIN AURORE BELALAHY