The Central Bank of Egypt (CBE) instructed banks to open the limits for the use of credit cards in foreign currencies.
The CBE's directives come within the framework of a comprehensive economic reform program that is being implemented in coordination between the Central Bank and the government with the support of bilateral and multilateral partners, and after providing the necessary financing to support foreign exchange liquidity.
This came after a recent CBE decision to raise the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 600 basis points to reach 27.25%, 28.25%, and 27.75%, respectively.
Previously, individuals holding credit cards issued on or after December 21 2023 were required to wait a minimum of six months before engaging in FX transactions.
Under the recently implemented FX regulations, credit card users are subject to a monthly limit of approximately EGP 7,750 for transactions conducted in the local currency.
Under the previous guidelines, cardholders needed to inform their bank and provide proof of travel before using the cards overseas.
Cardholders, however, still need to submit proof of travel within 90 days to be able to use their cards abroad.
