A report says that some Egyptian banks are now restricting their clients' foreign-exchange withdrawals to $2,000 or less. They have also lowered the amount of foreign exchange that can be withdrawn when visiting another country. Egypt's shortage of foreign currency has forced some merchants to start demanding payment in dollars.
Devaluation of the Pound
Egyptian banks are reportedly imposing limits on the number of foreign currency travelers can withdraw before leaving or when they are abroad, a report has said. The news comes amid increasing pressure against the Egyptian pound, which has lost nearly 30 percent of its value against the US dollar since January 2015.
HSBC recently informed its clients that the maximum amount of foreign currency they can withdraw for travel purposes is now $1,500. Before the changes, clients could withdraw up to $5,000. The report, which cites two unnamed sources and comes from Reuters, adds that once abroad, clients will only be allowed to withdraw a maximum of $5,000 — down from $10,000.
Commercial International Bank reportedly told clients who intended to travel that they could only withdraw foreign currency that was equivalent to between $1,000 and $2,000. Another financial institution, First Abu Dhabi Bank, reportedly lowered its withdrawal limit to the U.S. dollar equivalent of $518—or 10,000 pounds—for accounts in the United Kingdom.
Egypt’s currency shortage and depreciating currency have prompted merchants to . While this practice is said to be illegal, according to Ahmed Shiha, Egyptian companies doing this “are taking advantage of the circumstances and the customers’ needs for specific products.”
