Instruction No. 007-DPM/25 Amending and Completing Provisions on the Policy Rate and Interest Rate Corridor System of Banky Foiben'i Madagasikara

BANK OF MADAGASCAR

DIRECTION OF MONETARY POLICY IMPLEMENTATION

INSTRUCTION NO. 007-DPM/25 amending and completing certain provisions of Instruction No. 003-DOM/25 dated April 28, 2025 and Instruction No. 005-DOM/25 dated May 6, 2025 regarding the policy rate of Banky Foiben'i Madagasikara and the interest rate corridor system.

The Governor of Banky Foiben'i Madagasikara,

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

Pursuant to Law No. 2020-011 of September 1, 2020 on banking law,

Pursuant to Decree No. 2023-011 of January 10, 2023 repealing provisions of Decree No. 2019-2069 of November 6, 2019 and appointing the Governor of Banky Foiben'i Madagasikara,

Pursuant to Instruction No. 006-DOM/19 of October 25, 2019 on money market instruments, modified and supplemented by Instruction No. 003-DOM/24 of February 2, 2024 whose provisions were modified by Instruction No. 004-DOM/25 of April 28, 2025,

Pursuant to Instruction No. 003-DOM/25 of April 28, 2025 on the policy rate of Banky Foiben'i Madagasikara and the interest rate corridor system whose provisions were modified by Instruction No. 005-DOM/25 of May 6, 2025,

Pursuant to Instruction No. 006-DPM/25 of September 3, 2025 on deposit facilities.

DECIDES

Article 1:

This Instruction aims to amend and complete certain provisions of Instruction No. 003-DOM/25 dated April 28, 2025 and Instruction No. 005-DOM/25 dated May 6, 2025 regarding the policy rate of Banky Foiben'i Madagasikara and the interest rate corridor system.

1

Article 2:

The provisions of Articles 4 and 5 of Instruction No. 003-DOM/25 dated April 28, 2025 on the policy rate of Banky Foiben'i Madagasikara and the interest rate corridor system are amended as follows:

Article 4 (new):

In implementing the monetary policy operational framework, BFM uses an asymmetric corridor to steer short-term interest rates.

Article 5 (new):

The marginal lending facility rate is set at 1.0 percentage point above the policy rate, while the deposit facility rate is located at 4.0 percentage points below the policy rate.

Article 3:

All provisions contrary to this Instruction are hereby repealed and remain so.

Article 4:

This Instruction takes effect as of October 8, 2025.

Antananarivo, October 2, 2025

[Signature]

The Governor
Aivo H. ANDRIANARIVELO

2