Saudi Arabia last week raised bank reserve requirements to 12 per cent from 10 per cent to stem a surge in inflation, the third move of its kind since November, traders said on Monday.
"The increase took effect on April 1," one trader said on condition of anonymity, because the Saudi central bank bans banks from talking to media about its monetary policy memos.
The move forces banks to keep more money in their vaults. The central bank, known as the Saudi Arabian Monetary Agency, raised the reserve ratio to 9 per cent from 7 per cent in November and increased it again in January to 10 per cent. (Reuters)
Saudi bank reserve requirements raised