Regulatory Alerts2017-05-08
A circular dated May 7, 2017 regarding limiting exchange companies’ transactions with banks
Cairo, May 7, 2017 Dear Sir/Chairman of the Board of Bank I would like to refer to the instructions dating back to 2003 regarding the challenges faced by the licensed payment institutions and what follows: - They are not allowed to determine exchange rates for buying and selling foreign currencies. - All licensed payment institutions must adhere to an agreement with at least one of the authorized foreign banks, with a clear statement to their employees that the announced rates are those set by the authorized bank with which they have agreed. Given this, I would like to emphasize our cooperation with your banks in applying these instructions for the seven licensed payment institutions. We request your understanding of the contracts between your banks and the payment institutions on this matter. Please note that a grace period of three months will be given to both the licensed payment institutions and the banks to comply with what has been stated. We would appreciate your cooperation in high **esteem** Sincerely, Jamal Najim