CBE allows opening the limits of using credit cards in foreign currency

On Wednesday, the Central Bank of Egypt directed local banks to open the limits on the use of credit cards in foreign currency, in a new step towards enhancing the stability of the domestic exchange market, according to Al Arabiya website. 

The Central Bank's directives are part of a comprehensive economic reform programme, implemented in coordination between the Central Bank and the Government with the support of bilateral and multilateral partners, after the provision of required funding to support foreign exchange liquidity.

It is worth mentioning that the Central Bank of Egypt's decided this morning to raise interest rates by 600 basis points to 27.25%.

Today, the Central Bank of Egypt issued a periodic book on the review and purification of foreign exchange application reports. It directed banks towards a full commitment to review pending foreign exchange application reports that are submitted periodically to CBE, while emphasizing the removing of measure applications that customers refrained from implementing in accordance with the exchange rate on the day of implementation.

The Central Bank's statement stated that banks should thoroughly review those reports and clear the data sent to avoid the inclusion of any non-existing requests, in order to ascertain the actual volume of foreign exchange requests by banks.

This is part of efforts to meet foreign exchange demand for customers through the banking sector, with the aim of regulating the exchange market system, as well as supporting foreign exchange trading through legitimate channels. The Central Bank's statement stated that banks should thoroughly review those reports and clear the data sent to avoid the inclusion of any non-existing applications, in order to know the actual volume of foreign exchange applications by banks.

This is part of efforts to meet foreign exchange demand of customers through the banking sector, with the aim of regulating the exchange market system, as well as supporting foreign exchange trading through legitimate channels.