The new instructions will allow lenders the ability to use foreign currency held in company accounts before Sept. 19 to open new letters of credit or inward documentary credits
The Central Bank of Egypt (CBE) has issued new instructions to facilitate imports, including accepting cash deposits in foreign currencies, as Egypt deals with a backlog of imports and soaring prices.
The new instructions will allow lenders the ability to use foreign currency held in company accounts before Sept. 19 to open new letters of credit or inward documentary credits.
Instructions included the release of imported shipments that worth up to $25,000 to importers once every 6 months, while shipments with a value exceeding $25,000 are released using Form 4. Importers are required to file Form 4 after paying customs fees to receive either a letter of credit (L/C) or to finalize the process of documentary collection.
In the case of electronic goods assembled in Egypt or consisting of local parts, the CBE has excluded the foreign component from opening a documentary credit/letter of credit in order to accept the shipping documents due to being production requirements.
The instructions added that it will accept the proceeds of companies' cash deposits in foreign currencies resulting from export operations with neighboring countries Libya, Syria, Sudan, Palestine, Iraq, and Yemen.
According to the Central Bank of Egypt’s statement, the exporter must complete a true copy of the customs declaration certified by the competent customs, the General Organization for Export and Import Control, and the foreign trade sector in the Ministry of Trade and Industry, according to the two periodicals issued by the Central Bank on May 13, 2015 and October 20, 2015.