CBE raises required reserve on local currency deposits to 14%

CBE raises required reserve on local currency deposits to 14%: The central bank will raise the required reserve ratio on local currency deposits for domestic banks to 14% from 10% as of 10 October, a statement picked up by Reuters says. The bank said it was an “appropriate” time to bring the ratio back to its pre-2012 levels “in light of Egyptian banks’ strong financial indicators and improving performance and profitability.” The CBE had cut reserve requirements to 10% “in order to provide banks with more cash to lend to the government and businesses,” the wire notes.