Bloomberg News

Uruguay Raises Reserve Requirements to Damp Credit Growth

July 23, 2012

Uruguay’s central bank increased reserve requirements to damp a pick-up in lending and ease pressure on consumer prices.

The move will help “moderate inflationary pressures and the eventual negative impact on competitiveness,” the central bank said in an e-mailed statement today.

The amount banks have to put aside as reserves will rise to 20 percent of the increase in deposits in the national currency since April 2011, from the current 15 percent, the bank said. In relation to the increase in foreign currency deposits over the same period, the reserve ratio rose to 40 percent from 27 percent.

Uruguayan inflation was 8 percent in June, little changed on the previous two months and up from 7.5 percent in March.

To contact the reporter on this story: Lucia Baldomir in Montevideo at lbaldomir@bloomberg.net.

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net.


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