Egyptian banks started imposing limits on overseas’ cash withdraws and online purchases in foreign currency for debit and credit cards to combat the country’s acute foreign currency shortage.
The maximum limit for using the card in foreign currency within 30 days is the amount of the credit limit of the credit or debit card, knowing that the 30 days will be calculated with the first foreign purchase transaction in foreign currency.
These instructions are similar to what happened before the pound’s devaluation against the dollar in November 2016.
The Commercial International Bank(CIB) in Egypt was the first to introduce the new tightened International spending limits for debit and credit cards, and other banks will follow.
International Spend Limits for Individuals’ Debit & Credit Cards in Egypt as of October 2022
According to CIB Egypt, all transactions in foreign currencies will be capped for individual users; starting October 6, 2022.
- Monthly cash withdrawal overseas: The new cash withdrawal overseas is up to EGP 5,000 ($250) for regular debit cards. Higher tier debit cards will have a maximum of EGP 20,000 ($1,000) to withdraw abroad monthly.
- Debit Card Spending Overseas: Spending using the debit card overseas will be limited to EGP 20,000 ($1,000) for regular cards and up to 50,000 ($2,500) for the higher tier debit cards.
- Online Transactions in Foreign Currency: Purchasing online in foreign currencies is capped by EGP 20,000 ($1,000) for regular cards and up to EGP 50,000 ($2,500) for the higher tier cards.
International Spend Limits for Corporate Debit & Credit Cards in Egypt as of October 2022
Corporate debit cards are also capped. Unfortunately, these limitations will create obstacles for businesses that rely on online payment, including hosting companies and digital marketing agencies.
- Monthly Cash Withdrawal Overseas: The new cash withdrawal overseas is up to EGP 30,000 ($1,500)
- Debit Card Spending Overseas: Spending using the debit card overseas will be limited to EGP 200,000 ($10,000)
- Online Transactions in Foreign Currency: Purchasing online in foreign currencies is capped by EGP 200,000 ($10,000)
The pound’s exchange rate continues to decline daily against the dollar at a rate of a few piasters, to approach the barrier of EGP20 per dollar, up from EGP15 per dollar months ago, losing around 25 percent of its value. However, the dollar’s exchange rate hits EGP24 and sometimes EGP27 in the black market.
Also read: World Bank Signs Off $400M to Reduce Egypt’s Greenhouse Emissions
