CAIRO: Egypt's central bank said on Tuesday it was lowering the reserve requirement on local currency deposits to 12 percent from 14 percent to increase banking sector liquidity. The new ratio is effective as of Tuesday. "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 percent to 12 percent," the bank said on its website. "This measure will provide permanent liquidity into the banking system and help ease credit conditions in the market," it said.