National Bank of Kazakhstan raises MRR to 3.5%-5% for tenge, 10%-15% for foreign currency liabilitiesThe Board of the National Bank of Kazakhstan has approved a resolution raising the minimum reserve requirements (MRR) for banks from 1.3% to 3.5% and 5% for tenge liabilities, and from 2.5% to 10% and 15% for foreign currency liabilities, the press service of the macroregulator reported."To help the banking sector adapt to the changes, the MRR ratios will be raised to the target levels gradually over the year," the statement said.It was clarified that the changes to the MRR mechanism are being introduced to strengthen the anti-inflationary focus and improve the tools of the National Bank's monetary policy."The measures adopted will help reduce excessive growth in monetary aggregates and improve the transmission of monetary policy, which will enhance the effectiveness of the fight against inflation. The main goal of the National Bank is to reduce inflation to 5%. All available tools will be used for this purpose," the macroregulator added.According to the National Bank, the proposed amendments were developed based on analysis and a study of the international experience of MRR application by central banks in the EAEU, Central Asia, and the Caucasus. For example, the average level of MRR ratios for national currency liabilities in these countries (excluding Kazakhstan) is 4-4.5%, and for foreign currency liabilities, it is about 15%.As reported earlier, in the first stage (September 2025), the MRR level will increase to 3.5% for tenge and 10% for foreign currency. In April 2026, the MRR level for tenge liabilities will remain at 3.5%, while the level for foreign currency liabilities will rise to 12%. In September 2026, the National Bank plans to reach the target levels - 5% for tenge liabilities and 15% for foreign currency liabilities.The National Bank of Kazakhstan had previously stated that it planned to make a decision on MRR by the end of the first half of 2025. As the regulator explained, reducing banks ability to earn risk-free profits on National Bank instruments will encourage lending growth." (ICE ALMATY)

Fonte notizia: INTERFAX