Regulation (NAP) – Amendment of Base Rates, Minimum Cash Reserve Coefficient and Issuance of Deposit Certificates

	NAP	CODE
	PERMANENT REGULATORY STANDARD	MGL 01
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PG 1/2
C.A.	June 13, 2022	July 7, 2022	06/2022

Subject: Amendment of Base Rates, Minimum Cash Reserve Coefficient and Issuance of Deposit Certificates

Considering the recent evolution of the national and international economy as well as the outlook for 2022, particularly regarding domestic price levels;

Given the need to adopt monetary policy measures aligned with fiscal policy measures, aiming to contain high domestic inflationary risk;

In these terms, the Central Bank of São Tomé and Príncipe, pursuant to Article 32 of its Organic Law (Law No. 8/92), determines the following:

Article 1.
(Base Rates of BCSTP)

i) The reference interest rate is amended from 9.0% to 10.0%; ii) The liquidity facility interest rate is amended from 9.5% to 10.5%;

Article 2.
(Minimum Cash Reserve Coefficients - MCR)

i) The domestic currency MCR coefficient is amended from 18% to 28%; ii) The foreign currency MCR coefficient remains unchanged at 21%;

Endorsed		Revocation Details: NAP 10/2017 - Amendment of Base Rates of the Central Bank of São Tomé and Príncipe dated June 28, 2017; Monetary Policy Committee Decision No. 2/2020 dated December 31, 2020.

	NAP	CODE
	PERMANENT REGULATORY STANDARD	MGL 01
PROPOSER(S)	EFFECTIVE DATE	ISSUANCE DATE	DOC NO.	PG 2/2
C.A.	June 13, 2022	July 7, 2022	06/2022

Article 3.
(Issuance of Deposit Certificates)

Issuance of deposit certificates with a 1-month maturity at a variable rate.

Article 4.
(Revocation)

NAP No. 10/2017, dated June 28, is hereby revoked, as well as the MPC Decision No. 02/2020 dated December 31, 2020.

Article 5.
(Entry into Force)

This NAP enters into force as of June 13, 2022.

Central Bank of São Tomé and Príncipe, on the 7th day of July 2022.

Endorsed		Revocation Details: NAP 10/2017 - Amendment of Base Rates of the Central Bank of São Tomé and Príncipe dated June 28, 2017; Monetary Policy Committee Decision No. 2/2020 dated December 31, 2020.