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Egyptian banks & new rules for spending abroad

The Clap

At least 5 Egyptian banks are clamping down on spending abroad due to the country’s foreign currency shortage.

What

Al Baraka Bank and EG-bank have completely stopped foreign cash withdrawals, while others like Commercial International Bank (CIB) and Abu Dhabi Islamic Bank (ADIB) have reduced limits to USD 50.

So What

This move reflects Egypt’s ongoing economic challenges as the government aims to implement a reform program backed by the International Monetary Fund, Asharq Business reported.

Now What

Many economists, according to Asharq Business, expect another devaluation of the EGP in Q1-24. This would make it the fourth devaluation since early 2022.