CAIRO - 6 March 2024: The Central Bank of Egypt (CBE) has instructed banks to lift limits on the use of credit cards for transactions in foreign currencies. This directive, implemented in coordination with the government and with the backing of bilateral and multilateral partners, follows the provision of necessary financing to support foreign exchange liquidity.
Previously, individuals who obtained credit cards issued on or after December 21, 2023, were required to wait a minimum of six months before engaging in foreign exchange (FX) transactions. Additionally, credit card users were subject to a monthly limit of approximately EGP 7,750 for transactions conducted in the local currency under the previous guidelines.
Prior to these recent changes, cardholders were obligated to inform their respective banks and provide proof of travel before using their cards for overseas transactions. However, while the new regulations have relaxed certain requirements, cardholders are still required to submit proof of travel within 90 days in order to utilize their cards abroad.
The CBE's decision to increase credit card usage limits in foreign currencies is consistent with its broader efforts to promote economic reforms, eliminate the parallel market and enhance financial flexibility. These measures are expected to have a positive impact on Egypt's business and tourism sectors, facilitating smoother transactions for individuals and businesses alike.
The CBE earlier today raised key interest rates: overnight deposit rate, the overnight lending rate, and the rate of the main operation by 600 basis points, reaching 27.25 percent, 28.25 percent, and 27.75 percent respectively.
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