Egypt’s Central Bank Shuts Down 7 Forex Firms On Regulation Violation

Egypt’s Central Bank has shut down 7 foreign exchange firms due to violating the bank’s regulations on the exchange’s price alongside reasons related to certain administrative issues.

Exchange market sources told ‘Amwal Al Ghad’ that some of those forex firms claimed that the reason behind the CBE’s shutting down orders was the U.S. dollar liquidity shortage; while the major reason was the violations of bank’s regulations.

It is worth noting that the Egyptian exchange market suffers from dollar liquidity shortage since the last week as some banks, notably BNP Paribas, could not provide the forex firms with the U.S dollar driving those firms to rely on their own resources to provide the foreign currency. Accordingly, dollar exceeded EGP 6.70 (sell price) against the Egyptian pound.