Regulatory Alerts2005-06-13
Instruction No. 02-CR/05 of June 13, 2005 on the Central Bank of Madagascar's Actions in the Money Market
The Central Bank of Madagascar issued Instruction No. 02-CR/05 on June 13, 2005 to regulate central bank money by restructuring its refinancing and liquidity absorption operations in the money market. The directive establishes two primary refinancing categories—initiated repos and outright purchases, plus bank-requested 2-to-10-day and special repos—alongside negative calls for tenders and outright sales to absorb excess liquidity. It standardizes tender procedures, collateral requirements using Treasury Bills or negotiable debt securities, interest rate calculations relative to the policy rate, and submission deadlines for all participating financial institutions.
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