Egypt tightens money transfers

[DJKeefy]

Travelers to and from Egypt will not be allowed to have more than $10.000 or its equivalent on them. Egyptian President Mohamed Morsi modified the central bank law in order to tighten foreign currency transfers from and to Egypt.

The new presidential decree published in the official newspaper applies to foreigners and Egyptians alike, and includes foreign currencies as well as local.

Furthermore, the president prohibited the entry or exit of foreign currencies via postal consignments and parcels. The original law prohibited only the sending or receiving of Egyptian banknotes (not foreign currencies) via postal consignments and parcels.

The decision was taken to limit demand on dollars as International Reserves significantly decreased since the revolution. Egypt's net International Reserves lost almost 60 per cent of their value between January 2011 and November to reach some $15 billion.

Foreign direct investment and tourism revenue - two of Egypt's main sources of foreign currency - decreased since the revolution.

For the first time in eight years, the US Dollar exchange rate exceeded the 6.1 threshold, trading at 6.15 for the Egyptian pound in December.

Experts expect a further devaluation of the Egyptian currency. Egypt's largest investment bank, EFG-Hermes, expects the dollar to hike to some LE6.60 next year.

The current Central Bank, the Banking Sector and Money Law issued in 2003 does not fix a maximum for money transfers. It only specified that the traveler must inform authorities when the amount of money being transferred exceeds $10,000.

"All travelers can enter or exit with foreign currencies, providing they declare the amount on entry or exit if it exceeds ten thousand US dollars, or their equivalent in foreign currencies," the reads the original law.

Source: http://english.ahram.org.eg/News/61257.aspx

[LovelyLadyLux]

What? ONLY $10,000??? That is ONLY pocket change! Guess that nails it, IF I can only bring $10,000 with me for my 2 week holiday I just won't be able to afford to go. Won't be able to buy enough at the Souk to make it worth my while.......

[Chocolate Eclair]

What next? the pension payments for ex pats? I wonder!!! At this moment of time I cannot see anyone wanting to invest in Egypt, and that is very damaging, for the people, for the economy, and for the Country.....

[BBLUX]

We saw a direct impact of this policy today.
In the Luxor HSBC branch window there is a notice advising that only HSBC account holders will now be able to exchange currency in the branch. I confirmed this with staff in the branch.
The hotel currency exchanges do not seem to be affected as yet.

The usual practise of bringing your own national currency and exchanging in Egypt is no longer the best option.

[HEPZIBAH]

'Travelers to and from Egypt will not be allowed to have more than $10.000 or its equivalent on them.'

But hasn't that been the case technically for a long time. I'm sure that is what has been on the Consulate and Customs info for a long time.

[Who2]

Someone of influence should remind them of that old saying and action ' to cut off one's nose is to.....ect
Alexander the Great offered that alternative to death, thereby disarming their emotional centers for seeking revenge...
ps: 'not a lot of people know that!
PS: I seem to have 'lost the plot and posted this in two different posts, but seems pertinent to both, perhaps the 'plot is not so lost....

[LivinginLuxor]

I would have thought that there should be no problem in bringing $10,000 into the country - it would help the foreign currency reserves!

[A-Four]

I would have thought that there should be no problem in bringing $10,000 into the country - it would help the foreign currency reserves!

Yer, but you change it into LE, and then try changeing it back to $,........I think not, and what about the poor sods who last year invested in a bond at 10% for the LE, but then again, I did give a warning last year on here.

[Bullet Magnet]

I tend to agree, foreign money would be an asset to Egypt given the exchange rate, although not as bad as it was in 2007, when you could get almost 12LE to the UKP.

In Zimbabwe, the Authorities would not allow foreign currency out of the country, due to the rate of inflation of the Zimbabwe Dollar.
Let's hope it does not get that bad in Egypt. . .