Regulatory Alerts2023-04-26
Instruction No. 002-DOM/23 of April 26, 2023 amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system and repealing Instruction No. 004-DOM/21 of November 2, 2021
The Central Bank of Madagascar issued Instruction No. 002-DOM/23 on April 26, 2023, to amend the mandatory reserve system framework and repeal Instruction No. 004-DOM/21. The directive establishes a uniform mandatory reserve ratio of 9.00% for deposits held in both Ariary and foreign currencies. This measure enters into force immediately upon signature and applies to the reserve accumulation period from April 5 to May 9, 2023.
CENTRAL BANK OF MADAGASCAR
MONETARY OPERATIONS DIRECTORATE
INSTRUCTION NO. 002-DOM/23 amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system and repealing Instruction No. 004-DOM/21 of November 2, 2021
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. 008-DOM/19 of October 25, 2019 on the general framework governing mandatory reserves,
Having regard to Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system,
HEREBY DECIDES
Article 1:
This Instruction aims to repeal the provisions of Instruction No. 004-DOM/21 of November 2, 2021 and to amend the provisions of Article 4 of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system.
Article 2:
The provisions of Article 4 of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system are amended as follows:
« Article 4 (new): With reference to Article 7 of Instruction No. 008-DOM/19 of October 25, 2019 on the general framework governing mandatory reserves, the mandatory reserve ratio calculated on deposits in Ariary and foreign currency is set at 9.00%. »
Article 3:
Instruction No. 004-DOM/21 of November 2, 2021, amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019 on the mandatory reserve system, is hereby repealed in all its provisions.
Article 4:
This Instruction enters into force as of the date of its signature and applies from the mandatory reserve accumulation period from April 5 to May 9, 2023.
Antananarivo, April 26, 2023
[Signature]
THE GOVERNOR Aivo H. ANDRIANARIVELO