Regulatory Alerts2022-12-29
Added · Updated
Circular dated December 29, 2022 regarding the cancellation of controls on collection documents for import operations
The Central Bank of Egypt cancels the circular dated February 13, 2022, which previously restricted import operations to documentary credits only and prohibited collection documents. This cancellation allows banks to accept collection documents for all import operations, aligning with the central bank's plan to fully abolish these instructions by December 2022. The decision also supersedes the October 27, 2022 circular that had raised the exemption threshold for shipments to 500,000 USD.
Cairo on: December 29, 2022
Dear Mr. Chairman of the Board of Directors,
Greetings,
With reference to the circular dated February 13, 2022, which stopped the use of collection documents in implementing all import operations and mandated the use of documentary credits only for implementing import operations, and the subsequent exceptions to that decision, as well as the circular dated October 27, 2022, which increased the value of shipments exempted from the aforementioned decision from five thousand US dollars or its equivalent in other currencies to 500 thousand US dollars or its equivalent in other currencies.
And in light of what the Central Bank announced regarding the trend towards the gradual cancellation of those instructions until their complete cancellation is completed in December 2022, it has been decided to cancel the implementation of the circular dated February 13, 2022 and allow the acceptance of collection documents for implementing all import operations.
Please accept our highest respect,
Hassan Abdallah