Egypt's central bank told commercial banks on Tuesday to restrict customers from using credit cards for transactions in foreign currencies both domestically and abroad, the second time in a week it has cracked down on plastic.
to suspend the use of Egyptian pound debit cards for purchases outside the country to stop a foreign currency drain. Now in oral instructions to banks it has extended restrictions to credit cards.
"In light of what has been seen recently of some speculators misusing these cards by making cash withdrawals from abroad without actually travelling, instructions have been issued to banks to open and activate the maximum credit limit," the central bank said in a press release.Egypt has been facing a worsening foreign currency shortage over the last two years. Since March it has kept its currency fixed against the dollar despite a widening gap with the black market rate.
Both debit and credit card transactions are charged at the official rate of about 31 pounds to the dollar whereas on the black market a dollar sells for around 40 or 41 pounds. "What they discovered is that 70% of credit card usage is people here in Cairo ordering stuff from abroad," a senior banker said.
"If you're travelling you get your credit limit, whatever it is, 32,000 Egyptian pounds or whatever, according to your bank, but you have to inform the bank before you travel."Chrysler-parent Stellantis is canceling its presentation at technology show CES slated for January 2024 due to the ongoing United Auto Workers strike in the U.S.
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