Russia raises reserve requirements

Russia's central bank has increased minimum required reserves on foreign bank deposits from 2% to 3.5% in an effort to combat inflation.

The central bank said this step was taken "together with a range of other measures - raising the rouble exchange rate, growth in short-term deposit rates"

The move, which takes effect on 1 October, does not apply to other reserve requirements on commercial banks. It is aimed at stemming "a massive influx of private foreign capital", a result of foreign specula