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2018-09-28

Instruction No. 002-DOM/2018 Amending Certain Provisions of Instruction No. 005-DOM/2017 of December 19, 2017 on the Implementation of Monetary Policy Instruments by Banky Foiben'i Madagasikara

The Governor of Banky Foiben'i Madagasikara issued Instruction No. 002-DOM/2018 to amend Article 10.3 and Annex VI of the December 19, 2017 monetary policy instruction regarding mandatory reserves. The revised provisions establish that the minimum reserve amount is calculated based on specific assets and liabilities of credit institutions, denominated in Ariary and foreign currencies for both residents and non-residents, as reflected in their monthly statements or cumulative balances with the central bank. This directive defines the exact deposit categories constituting the reserve base and mandates compliance effective October 1, 2018.

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[LOGO] BANKY FOIBEN'I MADAGASIKARA

MONETARY OPERATIONS DEPARTMENT

INSTRUCTION NO. 002-DOM/2018 amending certain provisions of Instruction No. 005-DOM/2017 of December 19, 2017 on the implementation of the instruments of monetary policy of Banky Foiben'i Madagasikara

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 Decree No. 2014-1684 of October 29, 2014 appointing the Governor of the Central Bank of Madagascar,

Having regard to Instruction No. 005-DOM/17 of December 19, 2017 on the implementation of monetary policy instruments by Banky Foiben'i Madagasikara,

<u>DECIDES:</u>

Article 1: The provisions of Article 10.3 and Annex VI of Instruction No. 005-DOM/17 of December 19, 2017 on the implementation of monetary policy instruments by Banky Foiben'i Madagasikara are amended as follows:

Article 10: Mandatory Reserves (...) 10.3 (new) The minimum amount of mandatory reserves is determined by reference to certain elements of the assets and/or liabilities of credit institutions, in Ariary and foreign currencies for both residents and non-residents, as they appear on the monthly statement and/or cumulative balance of their holdings with BFM (see Annex VI)

Basis for Mandatory Reserves:

  1. Demand deposits and similar accounts (in Ariary and foreign currencies)
    • Ordinary accounts
    • Guarantee deposits
    • Payables charges
    • Matured treasury bills (bons de caisse)
    • Payables charges on treasury bills (bons de caisse)

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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

  1. Time and savings deposits (in Ariary and foreign currencies)
    • Time deposits
    • Special-regime savings accounts
    • Outstanding treasury bills (bons de caisse) (...)

Annex VI (new)

ANNEX VI

MANDATORY RESERVES

DECLARED: STATEMENT AS OF:

MANDATORY RESERVES BASISRESIDENTSNON-RESIDENTSEXTRACT OF MONTHLY STATEMENT
ArFOREIGN CURRENCIESAr
Ordinary accounts
Guarantee deposits
Payables charges
Matured treasury bills (bons de caisse)
Payables charges on treasury bills (bons de caisse)
Subtotal (1)

| Time deposits | | | | | 211 | | Special-regime savings accounts | | | | | 212 | | Outstanding treasury bills (bons de caisse) | | | | | 220 | | Subtotal (2) | | | | | |

TOTAL = (1) + (2)
Mandatory reserves to be established
TOTAL x X%

Article 2: This Instruction takes effect as of October 1, 2018.

Antananarivo, September 28, 2018

[STAMP] THE GOVERNOR ALAIN H. RASOLOFONDRAIBE

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