RIO DE JANEIRO, July 25 (Xinhua) -- Brazil's Central Bank Friday announced lowering reserve requirements, unleashing nearly 30 billion reals (13.63 billion U.S. dollars) to boost lending and increase liquidity.
"The central bank decided to adopt the measures to improve the economy's distribution of liquidity," the bank said in a statement.
The measures are designed to reinvigorate the country's economy, which is expected to grow merely 1 percent this year. Brazil's economic growth that reached 7.5 percent in 2010 has since been spiralling downwards, with a 2.7 percent growth in 2011, 1 percent in 2012 and 2.5 percent in 2013, respectively.
The bank said its reserves have grown from 194 billion reals (88.18 billion dollars) in 2009 to 405 billion reals (184.09 billion dollars) today, allowing it to use part of its resources to increase cash flow.
Under the new rules, banks will be allowed to use up to 50 percent of reserves for credit operations, new loans and diversified investment portfolios.