CBE directs banks to allocate USD for non-essential import LCs
Updated 11/3/2024 8:07:00 AM
Arab Finance: The Central Bank of Egypt (CBE) has instructed banks for the first time in two months to allocate dollars for letters of credit (LC) concerned with importing non-essential goods that require pre-approval, six unnamed bankers told Asharq Business.
The timing coincides with an anticipated press conference on November 3rd by Prime Minister Mostafa Madbouly, the CBE's Governor Hassan Abdalla, and International Monetary Fund's (IMF) Managing Director Kristalina Georgieva to address Egypt’s economic strategy.
The CBE's last directive to banks regarding non-essential imports was in August, before halting the arrangement of dollars for these goods.
Under current policy, banks must consult with the CBE for specific approvals when financing items from a list of 13 non-essential goods.
This list includes luxury items like cars, mobile phones, electronics, and children’s toys, as well as certain agricultural products such as seeds and fresh fruits.
Bankers noted that the CBE’s decision reflects an easing of import restrictions but not a full relaxation.
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