ANNOUNCEMENT 31 May 2019
On 31 May 2019, the Russian Central Bank increased reserve requirement on liabilities denominated in foreign currency.
NUMBER OF INTERVENTIONS
Bank of Russia Press-Release regarding Ordinance No. 5158-U, dated 31 May 2019, ‘On Mandatory Reserve Requirements’, https://www.cbr.ru/eng/press/pr/?file=04062019_134315eng_dkp2019-06-04T13_42_27.htm
Chronology of changes in an Excel file produced by Bank of Russia: https://cbr.ru/eng/statistics/credit_statistics/require_res_e.xlsx
On 31 May 2019, the Bank of Russia decided to raise Russian banks' reserve requirements on foreign-currency-denominated liabilities to individuals by 1 percentage point, to 8%, effective 1 July 2019. Ruble-denominated liabilities require a reserve of 4.75% or 1% depending on the type of credit institution.
According to the Bank press-release, the higher requirement is "to discourage growth of foreign currency-denominated liabilities in credit institutions’ liability structure.". Other required reserve ratios remain unchanged.
The decision follows the trend of increasing difference in reserve requirements between the ruble and foreign-currency-denominated liabilities, which started in April 2016.