October 2023

2023-10-05 16:59:05

At least two Egyptian banks have suspended the use of Egyptian pound debit cards abroad to stem the drain of foreign currency as currency shortages worsen in the country.

A number of customers said that the Arab African International Bank sent a notice to customers yesterday, Wednesday, and the Arab International Bank, on Thursday, announcing the suspension of this service.

A customer representative of the Arab African International Bank confirmed the move, saying it was due to the shortage of foreign exchange in Egypt.

A banker in Egypt said that all banks face similar problems as a result of the currency shortage, but each of them makes its decisions separately.

A large number of debit card holders were using the cards to make bulk purchases, often in the UAE, of gold, mobile phones and other products to take advantage of the low official exchange rate of the Egyptian pound.

Debit card transactions are charged at the official rate of regarding 31 pounds to the dollar, while the dollar is sold on the black market for regarding 40 or 41 pounds. Egypt has kept its currency stable once morest the dollar since March, despite the widening gap between the official rate and the black market.

“Sometimes they send the cards (without leaving Egypt) and buy things with them. You find four or five people from the same family,” the banker said.

The banker added that other banks are likely to impose similar restrictions next week.

In the past few months, Egyptian banks have reduced the amount of foreign currency they sell to customers when traveling and the amount they can purchase with their credit cards while abroad.

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