Regulatory Alerts2023-08-08
Instruction No. 004-DOM/23 of August 8, 2023, repealing Instruction No. 003-DOM/2023 of May 9, 2023, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system
The Central Bank of Madagascar issued Instruction No. 004-DOM/23 to repeal Instruction No. 003-DOM/23 and amend specific provisions of Instruction No. 007-DOM/19 governing the interest rate corridor system. The directive permanently maintains the corridor width at 2.00 percentage points while establishing standing facility rates at 9.00% for deposits and 11.00% for marginal lending. This regulatory update officially enters into force on August 9, 2023.
CENTRAL BANK OF MADAGASCAR
DIRECTORATE OF MONETARY OPERATIONS
INSTRUCTION NO. 004-DOM/23 repealing Instruction No. 003-DOM/23 of May 9, 2023, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system
The 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 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 the Central Bank of Madagascar,
Having regard to Instruction No. 006-DOM/19 of October 25, 2019, on money market instruments,
Having regard to Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system,
HEREBY DECIDES
Article 1:
This Instruction aims to amend the provisions of Articles 2 and 5 of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system, and to repeal the provisions of Instruction No. 003-DOM/23 of May 9, 2023.
Article 2:
The provisions of Articles 2 and 5 of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system, are amended as follows:
« Article 2 (new): The width of the interest rate corridor is maintained at 2.00 percentage points. »
« Article 5 (new): The rates for standing facilities are set as follows
- Deposit facility rate: 9.00%
- Marginal lending facility rate: 11.00% ».
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Article 3:
Instruction No. 003-DOM/23 of May 9, 2023, repealing Instruction No. 004-DOM/22 of October 18, 2022, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system, is hereby repealed in its entirety.
Article 4:
This Instruction shall enter into force on August 9, 2023.
Antananarivo, August 8, 2023
(Signature)
THE GOVERNOR AIVO HANDRIATIANA ANDRIANARIVELO
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