Egypt’s central bank on Thursday eased restrictions on the usage of credit cards abroad, enabling clients to use their cards without limits on hard currency withdrawals while being abroad.
According to a statement by the Central Bank of Egypt (CBE), the clients who are willing to use their credit cards abroad will only have to call the customer service of the issuing bank or visit one of the branches without the need to submit any documents.
However, clients are later required to apply to the issuing bank within 90 days of opening these limits to prove that the card was used by them not by someone else during their stay abroad. This will be through the exit and entry stamps on their passport or by sending evidence of their continued presence abroad if the 90-day period has passed.
CBE’s latest measures came in response to the client’s complaints of the difficulties they face in connecting with their banks to open the limits set by the government on hard currency withdrawals before traveling, it explained.
“Clients who do not comply with these instructions will be listed in the I-score list and will be deprived of issuing credit cards and of the banking services benefits in the future”, the CBE statement warned.
Earlier this month, the central bank decided to set restrictions to limit the usage of credit cards for transactions in foreign currencies abroad amid concerns of misuse and in a bid to hedge against the severe hard currency shortage in the local market. Accordingly, the CBE banned the use of debit cards abroad or in using them for hard currency transactions.
The CBE set later a limit of $250 maximum per month for all purchases made in hard currency using the credit card abroad. However, clients were still required to activate their cards for this max maximum before traveling.
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