Circular dated February 14, 2016 regarding POS devices

Cairo: February 14, 2016

To:
Mr. /
Chairman of the Board of Directors
Bank

Greetings,

With reference to Article 111 of the Central Bank of Egypt, Banking, and Monetary System Law issued by Law No. 88 of 2003, which states: "...Trading in the Arab Republic of Egypt in goods and services shall be in Egyptian Pounds in accordance with the rules determined by the Executive Regulations, unless otherwise provided for in an international agreement or another law." In light of the above, I would like to inform you that it has been observed recently that some commercial establishments are processing deductions for purchases made through Point of Sale (POS) devices available to them, where the credit cards used are issued in the local currency by banks within the Arab Republic of Egypt.

Based on the foregoing, I would like to alert you to:

1. The necessity to promptly modify the software applied to Point of Sale (POS) devices or their associated switches, so that they are not allowed to be used in foreign currency deduction transactions within the Arab Republic of Egypt using credit cards, debit cards, or prepaid cards issued by banks in the Egyptian banking sector in the local currency. This is while allowing transactions in foreign currency or Egyptian Pounds using payment cards issued by banks abroad.

2. Banks are granted a compliance period of two months from the date of this circular to modify the software applied to Point of Sale (POS) devices or their associated switches.

Please accept the highest assurances of respect,

Gamal Nagm