Motivational Rules from the Russian Central Bank: What Do They Include?

The Russian Central Bank has established new rules to encourage Russian banks to adjust their foreign currency assets in favor of currencies from countries regarded by Moscow as "friendly," starting from April 1st. The Central Bank confirmed in a statement that the required reserve rate for currencies from "unfriendly" countries will be set at 7.5 percent, while the rate for currencies from friendly countries will be at 5.5 percent. Russia considers the United States, European Union countries, and a number of other nations that have imposed sanctions on it as "unfriendly" countries.