CBE Raises Foreign Currency Transfer Rate To US$200,000

Central Bank of Egypt (CBE) Governor Hesham Ramez said the allowed maximum rate of foreign currency transfer will be increased up to US$200,000 starting January 2014.

Ramez had previously said that by the 25 January revolution, the maximum financial transactions had increased up to US$100,000 and that an additional $100,000 would be allowed by January 2014.

Financial Expert Bassant Fahmy said the move is a step toward modifying the atmosphere in Egypt to receive new investments.

“One of the issues that grabs investors’ attention is freedom of transferring money and the methods of getting out of the market in case of clearance,” Fahmy told Al-Masry Al-Youm. “Setting a maximum rate for money transfer after the revolution was a good step to reduce quick exit operations.”

Fahmy expected a return to the previous step through setting limits for transfers instead of increasing the rate after presidential elections, referendum and concluding the roadmap.

Fahmy added that increasing the transfer rate will not affect the total transfer. He also said that steps taken toward stability had been made to attract more investments.

In November, foreign cash reserves fell to $17.8 billion, compared to $18.6 billion in October. This marks the lowest rate since the influx of Gulf aid. In November 2012, foreign cash reserves had fallen as low as $15 billion.

Egypt’s foreign cash reserves, earlier estimated at $36 billion, sharply dropped due to the political turmoil that ensued after the January 2011 revolution.

Source: Al-Masry Al-Youm