Egypt lifts dollar restrictions for essential importing companies

13 March 2016

Decision keeps restrictions on the imports of other non-essential goods

The Central Bank of Egypt (CBE) has lifted restriction on foreign currency deposits and withdrawls for companies importing goods and basic products, according to a bank statement.

The decision was put in place on 9 March and kept in place restrictions on the imports of other non-essential goods.

CBE said the decisions are expected to provide goods and basic products for the Egyptian market, as well as enhance local trade and facilitate banking transactions for companies.

The move, which follows the lifting of restrictions on individuals last week, comes as a shortage of foreign currency continues to bolster the foreign exchange black market. The black market price for dollars is currently sitting at approximately £E10 – almost 15 per cent above the bank’s rate.

Previous dollar restrictions on corporations have meant many industrial operations continue to struggle as imports become problematic. Foreign investors in other sectors have also found it difficult to do business in Egypt amid the restrictions.

Egypt’s easing of regulations surrounding foreign currency is championed by the bank’s governor Tarek Amer, who was appointed late last year to try and solve Egypt’s currency challenges.

 

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