Egypt sets new rules on use of credit cards abroad

As per the new instructions sent to banks operating in Egypt, the customer should inform the bank of his travel to open and activate the maximum credit limit -- determined by each bank to the credit card for use abroad.

The decision was taken as the CBE has noticed recently “misuse of credit cards by withdrawing cash from abroad despite not travelling,” the central bank said in a statement on Tuesday.

“Instructions have been issued to banks to open and activate the maximum credit limit once the card owner contacts the bank’s customer services and notifies them of their travel abroad,” read the statement.

Banks have already started to inform customers of the limit of their domestic transactions.

State-owned National Bank of Egypt (NBE) limited domestic transactions to the equivalent of $250 per month. 

Banks in Egypt have been expanding withdrawal and purchase limits on cards used outside the country amid severe foreign exchange shortages.

In early October, several local banks suspended hard currency cash withdrawals and purchases made outside Egypt using debit cards, as per instructions from the CBE to reduce pressure on foreign currency reserves.

In August, Egypt’s foreign asset deficit amounted to nearly $25.92 billion. The USD stands at about EGP 31 in the official market and hovers around EGP 40 in the parallel market.