The Central Bank of Egypt (CBE) said it is increasing the reserve requirement on deposits to 14% from 10% for local banks, Invest-Gate reports.
The new reserve ratio will be effective as of October 10, the bank said in a statement.
“In light of the Egyptian banks’ strong financial indicators, strengthening performance, and profitability, which has been reflected in the financial and monetary stability, it is now suitable to restore the ratio back to its previous rates,” the statement read.
Between the years 2001 and 2011, the ratio stood at 14%. However, the ratio was gradually lowered to 10% following the 2011 revolution in a bid to increase the banking sector’s liquidity, the statement added.