The Central Bank said the liberalization of foreign exchange regulation, the large-scale net inflow of private capital into Russia and the surplus supply of foreign exchange on the domestic market contributed to a high level of liquidity in the banking sector.
"In these conditions, the Bank of Russia Board of Directors made a decision to raise the obligatory reserve requirement for credit institutions' obligations to non-resident banks in the currency of the Russian Federation and in foreign exchange from 2% to 3.5%," the bank said in a release.
"This measure, along with other measures (the ruble's rise, the increase in interest rates on deposit operations) will help restrain money supply growth and curb inflation," the bank said.
