Regulatory Alerts2016-03-07
A circular dated January 26, 2016 regarding amending the maximum limit for cash deposits in foreign currency
The Central Bank of Egypt has recently announced a series of measures to strengthen public confidence in the national economy and regulate import transactions and foreign investments. These include setting an upper limit for foreign-currency deposit by banks, which should not exceed USD 10 billion or its equivalent in foreign products per day, with no daily cap for imports of essential goods and medicines. The Central Bank's Board of Directors agreed at their January 2016 meeting to: 1. Increase the upper limit for foreign-currency deposit by banks from USD 250 million per day (or its equivalent in foreign products) to a maximum of USD 250 million daily, to be used for essential goods and raw materials, consumer durables and raw materials including food staples and agricultural inputs. Any surplus of the daily limit will be directed towards import operations as part of the total upper limit for foreign-currency deposit in the following month. 2. Maintain the regulations related to setting an upper limit for foreign-currency deposits at USD 10 billion or its equivalent in foreign products per day, without any change to: a) Individuals. b) Foreign investors.