CBE removes caps on foreign currency deposits

The Central Bank of Egypt (CBE) on Tuesday decided on removing the cap on deposits and withdrawals of foreign currencies as of 8 March 2016.The cap on deposits of foreign currencies at banks before the decision was $10,000 (1$=7.83EGP) per day with a maximum of $50,000 a month.

Its cap on withdrawals of foreign currencies before the move was $10,000 per day, without a monthly limit.

The CBE on Tuesday also issued new regulations for banks financing acquisitions of companies in the Egyptian market.

The new regulations oblige banks not to grant funding exceeding 50 percent of the operation value to any company for the acquisition of another firm.

This excludes letters of credit issued by the bank for the company wishing to acquire another firm listed in the stock market.