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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.
Daily Aggregate Liquidity Condition vs Minimum Reserve Requirement
|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|