02:45 PM
Monday 25 April 2022
I wrote – Manal Al-Masry:
Banks approved new instructions last week that prevent the acceptance of foreign exchange resources of unknown source or obtained from exchange companies, in import operations.
According to a document obtained by Masrawy, it is the internal foreign exchange resources resulting from the customer’s activity that can be used in import operations, in accordance with the instructions and controls in force in this regard.
This means that the importer or trader will not be able to finance his import operations except through two methods, either through the bank and the other through his own resources resulting from his activity.
The instructions included: “It is not permissible to use cash deposits or foreign currency transfers from the customer’s account from other banks in carrying out his import operations.”
An official in one of the major government banks explained this decision that the origin of the work of money changers is to provide the needs of individuals and not companies, so companies and importers must obtain their needs of foreign currency from banks, otherwise we will open the door to the parallel market.
An official source at the Central Bank of Egypt told the Middle East News Agency earlier that the banks opened documentary credits worth 11.6 billion dollars in just 6 weeks, from the first of last March until mid-April, and this comes compared to 6.2 billion dollars in the same period of 2017. 2020, an increase of 87%.
Last February, the Central Bank issued a decision to stop dealing with collection documents when importing operations were carried out, and to deal only with documentary credits.
The Central Bank allowed the goods previously shipped before the issuance of this decision to deal with them through collection documents at the request of the customer, and both branches of foreign companies, as well as subsidiaries of foreign companies, were excluded from that decision within the scope of import operations from the parent company and its groups only.
The Central Bank excluded from the application of this decision all of the shipments received by express mail, and shipments up to the amount of 5000 US dollars or its equivalent in other currencies, in addition to their medicines, serums and chemicals, in addition to a number of major food commodities.
The Central Bank also directed to reduce all commissions for documentary credits in all banks to be like commissions for collection documents, to increase the existing credit limits for customers and to open new limits for new customers in proportion to the volume of import of each customer, and to open all documentary credits required from all customers upon their request.
