Egypt scraps foreign exchange restrictions for importers

Egypt removed caps for the deposit and withdrawal of foreign currency for importers of non-essential goods

The Central Bank of Egypt (CBE) on Tuesday removed caps for the deposit and withdrawal of foreign currency for importers of non-essential goods, in what could be the latest sign of improving dollar liquidity in the Egyptian banking system.

Earlier this year, the CBE scrapped limits on transfers abroad as the liquidity situation improved.

The country imposed strict controls on the movement of hard currency as the 2011 uprising drove away tourists and foreign investors—key sources of foreign currency—forcing importers to rely on a more expensive black market for dollars.