The Central Bank of Egypt (CBE) has decided to ban the exchange of US$100 bills for banking clients and has called on bans to collect the bills from the black market in order to keep them from being smuggled abroad, according to an informed bank source, who added that local banks approved the decision.
The source also said that the CBE has banned the distribution of the $100 bill to clients and that banks have banned the exchange and doling out of smaller denominations as well.
“The decision was taken after the higher denomination was smuggled abroad,” the source said.
Meanwhile, Emad Gamal, director of an exchange firm, revealed that some other firms have decided to increase commission on the conversion of every $1,000, from $20 up to $60.
“Some exchange companies have increased activity in the conversion of foreign currency for importers, taking advantage of the CBE's decision on setting the highest rate of depositing the US dollar at US$50,000 per month,” he added.
Another source showed that the exchange firms approved a rate for converting the US dollar at LE8.25, while importers deposit into their bank accounts the value for the imported items in Egyptian pounds. Banks will then convert the value into foreign currency upon receiving the bill from the exporter.
Edited translation from Al-Masry Al-Youm
