At the end of July, banks in Montenegro held a required reserve of 306.52 million EUR, according to the Central Bank of Montenegro (CBCG). Of this, 72.81% was kept in domestic bank accounts, while 27.19% was held in CBCG accounts abroad.
The average total bank deposits in June, which form the basis for calculating the reserve, amounted to 5.62 billion EUR, with 84.42% in demand deposits and 15.58% in term deposits.
The CBCG sets the required reserve rates at 5.5% for demand deposits and term deposits up to one year, and 4.5% for term deposits over one year. Term deposits over one year with a clause allowing early withdrawal within a year are also subject to a 5.5% rate.
Banks can use up to 50% of their required reserves interest-free to manage daily liquidity, provided the amount is returned the same day.
