Brazil changes reserve rules, may free $17.7 bln

Thu Nov 13, 2008 6:02am EST
SAO PAULO, Nov 13 (Reuters) - Brazil's central bank further changed rules on reserve requirements for time deposits, demand deposits and savings, its latest move to increase liquidity to local credit markets.
Banks must now use government bonds, instead of cash, to meet part of their reserve requirements at the central bank. The measure will increase cash available to banks and may free up to 40 billion reais ($17.7 billion) to the banking system. ($1=2.263 Brazilian reais)
(Reporting by Renato Andrade, Writing by Elzio Barreto, Editing by Victoria Main)