Circular dated November 3, 2016 regarding the liberalization of exchange rates

Cairo on: 3 November 2016

Mr.

Chairman of the Board of Directors
Bank

In order to reaffirm confidence in the Egyptian economy and achieve monetary stability by targeting lower inflation levels, the Central Bank has decided to take several measures to correct the foreign currency trading policy by liberalizing exchange rates. This aims to provide flexibility for banks operating in Egypt to price the purchase and sale of foreign currency, with the goal of restoring its trading within legal channels.

This is in line with the comprehensive reform system included in the government's structural reforms program for public finance, which is currently being implemented decisively. The integrated package of monetary and financial reforms enables the Egyptian economy to face challenges, unleash its capacities, and achieve the desired growth and employment rates in accordance with Egypt's human, natural, and material resources and capabilities.

In this context, and to implement this decision and grant sufficient flexibility during the initial implementation period, the following has been decided:

1. Regarding bank working hours: Banks are allowed to open their branches until 9:00 PM and on weekly holidays for the purpose of executing foreign currency purchase and sale operations and cashing remittances of Egyptians working abroad, without charging any commissions, and without executing any other banking transactions. The Supervision and Control Sector of the Central Bank of Egypt must be notified with a statement of these branches.

2. Regarding foreign currency sourcing priorities: The circular letter issued pursuant to the letter of the Governor of the Central Bank of Egypt dated February 4, 2013, which included the essential goods that banks must prioritize in sourcing foreign currency when executing their own import operations, is hereby abolished.

3. Regarding foreign currency cash deposits: The Central Bank of Egypt reinforces the circular letters issued on March 8, 2016, and March 9, 2016, regarding the abolition of maximum limits for cash deposits and withdrawals for natural persons and legal entities, except for those operating in the field of importing non-essential goods, which are subject to a maximum limit of 10,000 US dollars per day, a maximum of 50,000 US dollars per month for deposits, and 30,000 US dollars for withdrawals.

The responsibility for currency markets has now become primarily the responsibility of Egyptian banks and their leadership, which requires your utmost care regarding this significant responsibility to achieve the desired purpose. We are confident that this responsibility is in trustworthy hands, aware of the public interest, and managing it with consciousness and awareness of the importance of their role and their commitment to the interest of this country, which expects from you, as you have accustomed it, respectful and committed performance.

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

Accept our highest respect,

Tamer Amer