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2016-02-15

Added 2024-09-20 · Updated 2026-08-16

Circular dated February 15, 2016 amending the maximum cash deposit in foreign currency for export companies

The circular increases the maximum monthly cash deposit limit in foreign currency for export companies with import needs to USD 1 million, subject to a daily limit and specific conditions. These conditions require that deposits align with import requests based on export transaction volume and that export proceeds in foreign currency are repatriated within three months at an amount equal to or greater than the deposits made. Failure to repatriate proceeds allows the bank to report the client to the Central Bank of Egypt for inclusion in failure lists, requiring banks to implement clear monitoring mechanisms to ensure compliance effective from the date of the circular.

Egypt

Central Bank of Egypt

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

In reference to the letter from Mr. Governor of the Central Bank of Egypt dated January 26, 2016, regarding the maximum limits for cash deposits in foreign currencies, I would like to inform you as follows:

Regarding companies operating in the field of exports and having import needs, the maximum limit for cash deposits (or its equivalent in foreign currencies) is increased to become USD 1 million per month, subject to a maximum daily deposit limit, provided the following:

The volume of deposits corresponds to the import requests submitted by the export transactions side of the Bank.
Export proceeds in foreign currency are received with a minimum amount equal to the value of the deposits made in the accounts of the exporting company within a maximum period of 3 months, and it is not required to assign the export proceeds received to the company.
In case export proceeds are not received by the Bank during the period specified in the previous clause, and after periodic follow-up with the client in this regard without success, which constitutes a failure on his part to prove the seriousness of the export process, it is necessary to notify the Central Bank of the client's name and group under the concept of a single client and related parties issued in this regard, so that a general directive is issued to the banking sector to include the client in the failure clients lists, due to the non-execution of similar cash deposits for the client and the group in the future. In this regard, each bank must commit to providing a clear mechanism through which to monitor the execution of the aforementioned operations and to ensure their effectiveness before starting to apply the instructions, in order to tighten control over their execution.

Please be kind enough to alert regarding taking the necessary action to implement the mentioned decision effective from its date.

Accept my highest respect,

Gamal Naguib