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(Adds credit card limits on international cash transactions)
CAIRO, July 19 (Reuters) - Emirates NBD Egypt said it was suspending use of debit and credit cards abroad, a control intended to shore up the domestic lender's hard currency reserves as Egypt endures a crippling forex shortage.
Egypt has suffered from a shortage of dollars in the banking system that has sapped its ability to pay for imports since a 2011 uprising drove away tourists and foreign investors, both crucial sources of hard currency.
Egypt's central bank last month issued a letter to bank chiefs asking that they "ensure that debit cards, including pre-paid cards, issued in local currency by Egyptian banks are only used within the country."
The central bank later said the letter was not intended to signal a blanket ban, but instead a request that banks prevent individuals from misusing debit cards to acquire large quantities of foreign currency while abroad.
The Emirates NBD announcement, on Monday night to customers via SMS, made it the first bank in Egypt confirmed by Reuters to be following the central bank directive to suspend dollar withdrawals abroad.
"Emirates NBD cards will be disabled for international use outside Egypt only effective 24th of July 2016 till further notice. Apologies for any inconvenience," read the text message.
Emirates NBD did not provide details about what type of cards would no longer be functional outside the country, but several bank employees told Reuters it would apply to both debit and credit cards.
Other banks have already reduced the limits on credit cards used overseas.
On Monday, Lebanon's Bank Audi informed customers that it was reducing the maximum purchase limit outside Egypt for holders of its Mastercard Titanium card to $4000 from $7000 dollars, and that its maximum withdrawal limit was $400 per month.
Arab African International Bank cut the international cash withdrawal limits to $1,000 a month for its Classic credit card and $2,000 a month for its Titanium card, according to its website. It did not say what the previous limits were.
The central bank was not immediately available for comment.
(Reporting by Ehab Farouk; Additional reporting by Lin Noueihed and Asma AlSharif; Writing by Eric Knecht; editing by John Stonestreet) ((eric.knecht@thomsonreuters.com; +20 2 2394 8102; Reuters Messaging: eric.knecht.thomsonreuters.com@reuters.net))
CAIRO, July 19 (Reuters) - Emirates NBD Egypt said it was suspending use of debit and credit cards abroad, a control intended to shore up the domestic lender's hard currency reserves as Egypt endures a crippling forex shortage.
Egypt has suffered from a shortage of dollars in the banking system that has sapped its ability to pay for imports since a 2011 uprising drove away tourists and foreign investors, both crucial sources of hard currency.
Egypt's central bank last month issued a letter to bank chiefs asking that they "ensure that debit cards, including pre-paid cards, issued in local currency by Egyptian banks are only used within the country."
The central bank later said the letter was not intended to signal a blanket ban, but instead a request that banks prevent individuals from misusing debit cards to acquire large quantities of foreign currency while abroad.
The Emirates NBD announcement, on Monday night to customers via SMS, made it the first bank in Egypt confirmed by Reuters to be following the central bank directive to suspend dollar withdrawals abroad.
"Emirates NBD cards will be disabled for international use outside Egypt only effective 24th of July 2016 till further notice. Apologies for any inconvenience," read the text message.
Emirates NBD did not provide details about what type of cards would no longer be functional outside the country, but several bank employees told Reuters it would apply to both debit and credit cards.
Other banks have already reduced the limits on credit cards used overseas.
On Monday, Lebanon's Bank Audi informed customers that it was reducing the maximum purchase limit outside Egypt for holders of its Mastercard Titanium card to $4000 from $7000 dollars, and that its maximum withdrawal limit was $400 per month.
Arab African International Bank cut the international cash withdrawal limits to $1,000 a month for its Classic credit card and $2,000 a month for its Titanium card, according to its website. It did not say what the previous limits were.
The central bank was not immediately available for comment.
(Reporting by Ehab Farouk; Additional reporting by Lin Noueihed and Asma AlSharif; Writing by Eric Knecht; editing by John Stonestreet) ((eric.knecht@thomsonreuters.com; +20 2 2394 8102; Reuters Messaging: eric.knecht.thomsonreuters.com@reuters.net))
