By Ben Tavener, Senior Contributing Reporter
RIO DE JANEIRO, BRAZIL – Brazil’s Banco Central (Central Bank, BC) has reduced its compulsory reserve requirements for the country’s banks, freeing up some R$30 billion (US$15 billion) of the R$380 billion (US$189 billion) of funds that must be safeguarded in the BC’s accounts. It is hoped that money could be injected into the economy through increased access to loans by the banks.
The Central Bank statement also announced it had now scrapped the additional six-percent requirements on demand deposits (“à vista”), and as of October 29th it . . .