Circular dated May 7, 2017 regarding limiting exchange companies’ transactions with banks

Cairo on: 7 May 2017

Dear Sir / Chairman of the Board of Directors
Bank

Greetings,

I would like to refer to the instructions in force since 2003 regarding the determination of exchange rates by exchange companies, which stipulate the following:

• It is not permitted for the company to determine prices for the purchase and sale of foreign currency.

• Each company must agree with one of the approved banks to announce its own prices for the sale and purchase of foreign currency notes for dealing with its customers, with clear notice to these customers that the announced prices are the prices of the approved bank with which an agreement has been made.

In light of the above, and to limit the concentration of transactions of exchange companies with a limited number of banks, it has been decided that the contracts of any bank with exchange companies in the field of the aforementioned instructions shall not exceed seven exchange companies as a maximum.

This and please forward to us a copy of the agreements between your bank and exchange companies in this regard, Taking into consideration that a period of three months will be granted to exchange companies and banks to comply with the above.

With highest respect,

Gamal Naguib