Central Bank Chairman Sergey Ignatyev will propose to decrease considerably the compulsory reserve rate at today's meeting of the Board of Directors of the Central Bank. He made a corresponding statement in the State Duma today.
This decrease will allow banks to improve their liquidity, although, according to Ignatyev, the present problems are likely to be of a psychological character. Ignatyev reported that the balance of correspondent accounts at Russian banks amounted to RUR223bn (about $7.68bn) as of July 1, 2004.
Chinese President Xi Jinping warned his new US counterpart Joe Biden not to push Europe into an alliance against Beijing