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New Foreign Currency Regulations

New Foreign Currency Regulations
On 4 February 2013, the Governor of the Central Bank of Egypt ("CBE") issued a Circular (circulars are not published neither in the Egyptian Gazette nor the Official Gazette but are sent to all registered banks and are binding by virtue of the Banking Law) allowing Egyptian individuals who transfer foreign currency into Egypt as of 10 February 2013 to repatriate it again without being bound by the maximum amount permitted to be transferred abroad since the January Revolution.
Maximum Cash Curried
CBE had restricted the transfer outside of Egypt of more than one hundred thousand US-Dollars by one individual in an attempt to restrict the foreign currency exit. The new rules amend these guidelines by exempting from this ceiling money brought into Egypt as of February 10th, 2013 for investment purposes provided: (1) that this applies to individuals and not companies, (2) that it applies to transfers made as of February 10th, 2013 not before, (3) that the transfer is properly documented, and (4) that the repatriation is made upon liquidation of the investment. The purpose of such new rules may be a good one, but there is doubt with respect to its effectiveness until some political and economic stability is in place. Moreover, the detailed procedures for the application of the new rules need to be better clarified.
Repatriation of New Egyptian Investments
In the same context, the President issued – by virtue of his legislative authority following the dissolution of Parliament – Law No. 160 of 2013 amending Article (16) of the Banking Law No. 88 of 2003.[1] The said Article previously restricted the entry or exit of more than ten thousand US Dollars in cash with travelers unless disclosed at the point of entry or exit. This meant that the entry or exit of larger sums in cash was not forbidden provided full disclosure was made. The new amendment changes that rule whereby it is no longer possible to carry more than that sum in cash, whether upon entry or exit, even with disclosure. The penalty for breaking that rule – under the general provision in the Banking Law – is the confiscation of the excess monies.   [1] Presidential Decree-Law No. 160/2012 amending certain provisions of the Banking Law, Official Gazette, Issue No. 51 (bis), 20 December 2012.
On 4 February 2013, the Governor of the Central Bank of Egypt ("CBE") issued a Circular (circulars are not published neither in the Egyptian Gazette nor the Official Gazette but are sent to all registered banks and are binding by virtue of the Banking Law) allowing Egyptian individuals who transfer foreign currency into Egypt as of 10 February 2013 to repatriate it again without being bound by the maximum amount permitted to be transferred abroad since the January Revolution.
Maximum Cash Curried
CBE had restricted the transfer outside of Egypt of more than one hundred thousand US-Dollars by one individual in an attempt to restrict the foreign currency exit. The new rules amend these guidelines by exempting from this ceiling money brought into Egypt as of February 10th, 2013 for investment purposes provided: (1) that this applies to individuals and not companies, (2) that it applies to transfers made as of February 10th, 2013 not before, (3) that the transfer is properly documented, and (4) that the repatriation is made upon liquidation of the investment. The purpose of such new rules may be a good one, but there is doubt with respect to its effectiveness until some political and economic stability is in place. Moreover, the detailed procedures for the application of the new rules need to be better clarified.
Repatriation of New Egyptian Investments
In the same context, the President issued – by virtue of his legislative authority following the dissolution of Parliament – Law No. 160 of 2013 amending Article (16) of the Banking Law No. 88 of 2003.[1] The said Article previously restricted the entry or exit of more than ten thousand US Dollars in cash with travelers unless disclosed at the point of entry or exit. This meant that the entry or exit of larger sums in cash was not forbidden provided full disclosure was made. The new amendment changes that rule whereby it is no longer possible to carry more than that sum in cash, whether upon entry or exit, even with disclosure. The penalty for breaking that rule – under the general provision in the Banking Law – is the confiscation of the excess monies.   [1] Presidential Decree-Law No. 160/2012 amending certain provisions of the Banking Law, Official Gazette, Issue No. 51 (bis), 20 December 2012.