IMF’s Jarvis says Egypt to lift cap on dollar deposits in months: paper

Egypt’s central bank will remove restrictions on dollar deposits in the coming months, local newspaper Al-Borsa has quoted International Monetary Fund’s mission chief for Egypt, Chris Jarvis as saying on Sunday.

The move will form part of a package of economic reforms Egypt has to implement to bring back foreign investment, in return for a $12 billion IMF lending programme.

In a long-awaited move, the central bank removed limits on international currency transfers last week, scrapping a $100,000 monthly limit on individual bank transactions.

“The central bank’s policy also includes removing remaining restrictions, including limits on dollar deposits, which we understand will take place in the coming months,” the financial newspaper quoted Jarvis as saying.

Egypt put in place strict controls on the movement of foreign currency after its 2011 political uprising, in an effort to limit the flight of capital.

As part of the three-year IMF deal, Egypt is obliged to end those controls, which include a limit of $50,000 per month on deposits for importers of non-priority goods.

Source: Reuters