Egypt Slops Limits on Foreign Currency Deposits for Individuals

CAIRO, Egypt, Capital Markets in Africa — Egypt removed restrictions on the amount of foreign currency individuals can deposit and withdraw from banks, to ease the damage from an intensifying dollar shortage.

However, Egyptian banks are still mandated to maintain caps on corporate accounts, Egypt’s central bank said in a statement on its website on Tuesday. The central bank  had limited foreign currency deposits to US$50,000 per month since February, 2015, before easing the rule for some companies in January to allow them to deposit up to US$1 million per month.

The latest change comes after the shortage of US dollar drove the Egyptian pound to a record low on the black market, where it trades at about a 20 percent discount to the official rate. The regulator has resisted calls from local investors to devalue the local currency out of concern that would increase inflation, hence pressured the low income earners.