The Central Bank of Egypt has issued new directives to banks, regulating transfers between company accounts, and limiting cash withdrawals of USD from automated teller machines (ATMs), a senior central bank official told Zawya.
"The CBE governor has met with all bank heads to give directives aimed at regulating the foreign currency markets and to curb black-market trading. The directive prevents the transfer of funds between two companies, a measure aimed at preventing money laundering," said the person on condition of anonymity because he is not authorized to speak to media.
"Once it is necessary to transfer funds between companies, the relationship must be disclosed as well as the purpose for the transfer and sources of funds. Previously, companies would buy and sell US dollars at black market rates which reached EGP 7.30 [per dollar]," said the source.
"The CBE has also instructed banks to limit USD cash withdrawals from ATMs. Some banks have already implemented a USD 10,000 per month limit. This was necessary because companies would use their cash reserves to trade on the black market by withdrawing from ATMs instead of importing goods and equipment," the person said.
© Zawya 2013
