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BFM : Introduces « Taha » to strengthen monetary policy

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BFM : Introduces « Taha » to strengthen monetary policy

Interbank one-day loans

« Taha » short for « Taha miantoka ny herin’ny ariary », is launched to bolster the national monetary market. This term, translating to « Malagasy money market reference rate, » denotes the daily loan amounts between local banks.

Since the year’s onset, Banky foiben’i Madagasikara (BFM) has tailored its monetary policy, focusing on regulating this rate. « Our strategy revolves around rate management, termed as the corridor, » explains BFM Governor Aivo Handriatiana Andrianarivelo.

BFM establishes a floor rate, termed the « deposit rate », and a ceiling rate, the « interbank lending rate », currently set between 9 and 11 %. According to the BFM governor, Taha is specifically designed for unsecured one-day interbank loans. This tactic aims to streamline interest rate policy transmission to consumers over the medium term. « We opt to release the Taha daily to integrate it as an indicator in our transactions », he adds.

Published daily, Taha serves as a benchmark in financial operations, influencing consumer loan rates. This rate enhances the effectiveness of monetary policy and aids in combating inflation. BFM’s goal is to short-term economic stabilization through Taha’s utilization as an economic policy instrument, concurrently fortifying the Malagasy financial market’s credibility for the future.

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