The move was needed to curtail inflation pressure caused by the inflow of significant funds into Russia, the press office said.
"The reserve requirements for liabilities to nonresident banks denominated in the currency of the Russian Federation and foreign currencies, and also for other credit institutions' liabilities in the currency of the Russian Federation and foreign currency-denominated liabilities have been set at 4.5%, while reserve requirements for credit institutions' national currency-denominated liabilities to individuals have been established at 4%," the press office said
Net capital inflow in Russia hit a record $42 billion in 2006 as Russian companies, believed to be heavily undercapitalized, held initial public offerings to raise funds for their development and compete successfully with western firms.
