Regulatory Alerts2022-09-22
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Circular dated September 22, 2022 regarding increasing the reserve ratio from 14% to 18%
The Central Bank of Egypt increases the required reserve ratio that banks must hold with the central bank from 14% to 18%. This decision applies to the reserve period starting on October 4, 2022, based on the average balances formed during the period from September 6 to 19, 2022. Existing central bank decisions regarding the reserve ratio remain in force.
Cairo on September 22, 2022
Dear Chairman of the Board,
Greetings,
Further to the circular dated October 3, 2017, regarding the cash reserve ratio, and in light of the continuous monitoring of the current economic situation, the Board of Directors of the Central Bank of Egypt decided in its meeting held on September 22, 2022 the following:
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Increase the cash reserve ratio that banks are required to hold with the Central Bank of Egypt to 18% instead of 14%.
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This decision shall apply from the reserve period starting on October 4, 2022, regarding the average balances forming the base of the ratio from September 6 to 19, 2022.
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Continuation of the application of the Central Bank of Egypt Board of Directors' decisions in force regarding the cash reserve ratio.
Please be so kind as to take note and alert to taking the necessary action to implement the aforementioned decision.
Accept our highest regards,
Hassan Abdallah