Egypt announces further procedures to stave off currency crisis
The Central Bank of Egypt is imposing yet more currency controls in an effort to stave of a crisis
The Central Bank of Egypt (CBE) announced on Sunday several procedures to preempt a looming foreign currency crisis, including putting a limit on corporate cash withdrawals at $30,000 per day, Reuters reported.
The new regulations also put a limit on the amount of US dollars banks can hold. Under the new rules, Egyptians banks are not allowed to hold long positions in US dollars of more than one per cent of their capital.
The Central Bank will place a one to two per cent administrative fee on individuals who purchase foreign currencies.
The CBE is offering $75 million at its first foreign currency auction on Sunday, with a maximum $11 million per bank.
The auction is part of a new currency regime the bank announced on Saturday to conserve its foreign reserves, which it said have fallen to a critical level.
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