The central bank of Egypt has said it is lowering the reserve requirement on local currency deposits to 12% from 14% to increase banking sector liquidity, Reuters has reported. "In light of the current liquidity situation which has emerged on the back of domestic and global developments, the CBE's Board decided to reduce the RRR (required reserve ratio) from 14% to 12%," the bank said. "This measure will provide permanent liquidity into the banking system and help ease credit conditions in the market," it said.