RegAlert
2019-10-25

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Instruction No. 007-DOM/19 on the Interest Rate Corridor System

The Central Bank of Madagascar issued Instruction No. 007-DOM/19 to formally establish an interest rate corridor system for monetary operations. The directive sets the corridor width at 4.4 percentage points, bounded by a 0.9% deposit facility rate and a 5.3% marginal lending facility rate. Consequently, the central bank is exempt from publishing a separate policy rate, instead using the marginal lending rate for non-tender borrowings and the deposit rate for non-tender placements.

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CENTRAL BANK OF MADAGASCAR

DIRECTORATE OF MONETARY OPERATIONS

INSTRUCTION NO. 007-DOM/19 on the Interest Rate Corridor System

The Governor of the Central Bank of Madagascar,

Having regard to Law No. 2016-004 of 29 July 2016, supplemented by Law No. 2016-057 of 2 February 2017 on the Statutes of the Central Bank of Madagascar,

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

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

HEREBY DECIDES:

Article 1: An interest rate corridor for monetary operations is bounded by the rates of the standing facilities defined in Article 2 of Instruction No. 006-DOM/19 of 25 October 2019 on money market instruments, namely the deposit facility rate and the marginal lending facility rate.

Article 2: The width of the interest rate corridor is set at 4.4 percentage points.

Article 3: Depending on the monetary policy operational framework and the interest rate corridor choice adopted by the BFM, the latter is not required to publish a policy rate as provided for in Law No. 2016-004 of 29 July 2016, supplemented by Law No. 2016-057 of 2 February 2017 on the Statutes of the Central Bank of Madagascar.

Article 4: If the policy rate is not published by the BFM,

  • the reference rate for non-tender borrowings from the BFM shall be the marginal lending facility rate,
  • the reference rate for non-tender placements with the BFM shall be the deposit facility rate.

Article 5: The rates of the standing facilities are set as follows

  • Deposit facility rate: 0.9%
  • Marginal lending facility rate: 5.3%

Article 6: This Instruction shall enter into force on 1 November 2019.

Antananarivo, 25 OCT 2019

[Signature]
THE GOVERNOR
ALAIN H. RASOLOFONDRAIBE

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

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Lineage: Superseded

Decree No. 2014-1684 of October…2014Decree No. 2014-1684 of October 29, 2014 Appointing the Governor of the Central Bank of Madagascar (2014-10-29)Law No. 2016-004 of July 29, 20…2016Law No. 2016-004 of July 29, 2016, as amended by Law No. 2016-057 of February 2, 2017, establishing the Statutes of the Central Bank of Madagascar (2016-07-29)Loi n° 2016-057 du 2 février 20…2017Loi n° 2016-057 du 2 février 2017 complétant la loi n° 2016-004 du 29 juillet 2016 portant statuts de la Banque Centrale de Madagascar (Law No. 2016-057 supplementing the law on the Statutes of the Central Bank of Madagascar) (2017-02-02)Instruction No. 006-DOM/19 on M…2019Instruction No. 006-DOM/19 on Money Market Instruments (2019-10-25)Instruction No. 007-DOM/19 onthe Interest Rate Corridor Sy…2019-10-25 · this documentInstruction No. 007-DOM/19 on the Interest Rate Corridor System (2019-10-25)Instruction No. 002-DOM/22 of M…2022Instruction No. 002-DOM/22 of May 3, 2022 amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system and repealing Instruction No. 001-DOM/22 of February 1, 2022 (2022-05-03)Instruction No. 003-DOM/22 repe…2022Instruction No. 003-DOM/22 repealing Instruction No. 002-DOM/22 of May 3, 2022 and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system (2022-08-02)Instruction No. 004-DOM/22 repe…2022Instruction No. 004-DOM/22 repealing Instruction No. 003-DOM/22 of August 2, 2022, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 regarding the interest rate corridor system (2022-10-18)Instruction No. 003-DOM/23 of M…2023Instruction No. 003-DOM/23 of May 9, 2023 repealing Instruction No. 004-DOM/22 and amending certain provisions of Instruction No. 007-DOM/19 on the interest rate corridor system (2023-05-09)Instruction No. 004-DOM/23 of A…2023Instruction 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 (2023-08-08)Instruction No. 004-DOM/24 repe…2024Instruction No. 004-DOM/24 repealing Instruction No. 004-DOM/23 of August 8, 2023, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system (2024-08-06)Instruction No. 003-DOM/25 of A…2025Instruction No. 003-DOM/25 of April 28, 2025 on the Policy Rate and Interest Rate Corridor System of Banky Foiben'i Madagasikara (2025-05-08)+5 moresee all below the graph+5 more
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Show all related documents (16)
Superseded by
Instruction No. 003-DOM/25 of April 28, 2025 on the Policy Rate and Interest Rate Corridor System of Banky Foiben'i Madagasikara2025
Amended by
Instruction No. 004-DOM/24 repealing Instruction No. 004-DOM/23 of August 8, 2023, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019, on the interest rate corridor system2024Instruction 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 system2023Instruction No. 003-DOM/23 of May 9, 2023 repealing Instruction No. 004-DOM/22 and amending certain provisions of Instruction No. 007-DOM/19 on the interest rate corridor system2023Instruction No. 004-DOM/22 repealing Instruction No. 003-DOM/22 of August 2, 2022, and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 regarding the interest rate corridor system2022Instruction No. 003-DOM/22 repealing Instruction No. 002-DOM/22 of May 3, 2022 and amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system2022Instruction No. 002-DOM/22 of May 3, 2022 amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system and repealing Instruction No. 001-DOM/22 of February 1, 20222022
+4 moreInstruction No. 001-DOM/22 of February 1, 2022, amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system and repealing Instruction No. 003-DOM/21 of November 2, 20212022Instruction No. 003-DOM/21 amending certain provisions of Instruction No. 007-DOM/19 of October 25, 2019 on the interest rate corridor system and repealing Instruction No. 002-DOM/21 of August 6, 20212021Instruction No. 002-DOM/21 repealing Instruction No. 001-DOM/21 of 7 May 2021 and amending certain provisions of Instruction No. 007-DOM/19 of 25 October 2019 on the interest rate corridor system2021Instruction No. 001-DOM-2021 amending certain provisions of Instruction No. 007-DOM-19 of 25 October 2019 on the interest rate corridor system2021
Issued under
Loi n° 2016-057 du 2 février 2017 complétant la loi n° 2016-004 du 29 juillet 2016 portant statuts de la Banque Centrale de Madagascar (Law No. 2016-057 supplementing the law on the Statutes of the Central Bank of Madagascar)2017Law No. 2016-004 of July 29, 2016, as amended by Law No. 2016-057 of February 2, 2017, establishing the Statutes of the Central Bank of Madagascar2016Decree No. 2014-1684 of October 29, 2014 Appointing the Governor of the Central Bank of Madagascar2014
Refers to
Instruction No. 006-DOM/19 on Money Market Instruments2019
Referred to by
Instruction No. 010-DOM/19 amending certain provisions of Instruction No. 004-DOM/19 of 3 May 2019 establishing the Exchange Platform for Monetary and Interbank Operations2019

Timeline

Amended 11 times · last 2025-05-08

Source: Banky Foiben'i Madagasikara — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

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