Thursday, May 12, 2011

Uruguay Raises Reserve Requirements 300bps

The Banco Central del Uruguay raised reserve requirements for banks on peso deposits by 300 basis points to 15% from 12% and 300 basis points on foreign currency deposits to 18% from 15%.  The Bank said "In light of internal price increases and the international context, we understand that we must take additional measures beyond the benchmark rate,".  Uruguay reported inflation of 8.34% in April, above the government's 3%-7% inflation target range.

www.CentralBankNews.info

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