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. Last Updated: 07/27/2016

Reserves Limit Cut for 3 Months

The Central Bank said Wednesday that it would cut minimum reserve requirements for banks for three months from Thursday to help them pass smoothly through a period of tight liquidity.

"As the need for additional liquidity from credit organizations will persist in the coming months, the decision ... to cut minimum reserve requirements ... will provide credit organizations with a greater opportunity to manage their liquidity," the bank said.

The move, which amounts to a loosening of monetary policy, comes only five months after the Central Bank raised the requirements.

The Central Bank said in a statement that it would cut reserve requirements on individuals' deposits to 3 percent from 4 percent.

Reserve requirements on nonresidents' deposits at Russian banks in both Russian and foreign currencies and requirements on all other obligations will fall to 3.5 percent from 4.5 percent.