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Minimum Reserve Requirement

The Minimum Reserve Requirement (MRR) is a monetary policy instrument used by some Monetary Authorities or Central Banks to directly influence money supply, and hence manage liquidity in the banking system. The MRR ratio stipulates the percentage of deposit liabilities that financial institutions under its supervision, namely commercial banks, are required to hold as cash with the Central Bank.

The MRR has been an integral part of the Central Bank of Seychelles’ range of monetary policy instruments since its inception in 1981. The system has evolved from its accommodative role with respect to the predominant fiscal policy to an important monetary policy instrument. The ratio has changed several times within a range of 2.5% and 20%. See Table. Currently, it stands at 13% and the liable deposits are inclusive of foreign currency deposits of residents.

Reserves held against Rupee and foreign currency liable deposits are not remunerated.

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Archived: Operational Guidelines on MRR


Daily Aggregate Liquidity Condition vs Minimum Reserve Requirement


SCR million
Minimum Reserve Requirement (MRR) Maintenance Period 18 Jul 2018 - 14 Aug 2018
Average MRR to be maintained 1261.05
Figures as at 19 Jul 2018
Average Aggregate Reserves Held in the maintenance period 1355.62
Average Aggregate cumulative excess / (Deficiency) 94.57
Actual Aggregate Reserves Held 1284.98
Actual Aggregate Excess / (Deficiency) 23.93
Forecast as at 20 Jul 2018
Volume of Maturities (DAA, T-Bills, Bonds, SDF) 502.49
Volume of Issuances (T-Bills only) 95.07