In an attempt to cope with the foreign currency shortage, Al Baraka Bank Egypt and EG-Bank have joined other Egyptian banks in temporarily limiting international credit card cash withdrawals.
The decision came in line with Egypt’s efforts to preserve valuable foreign currency. That’s why Egyptian banks have restricted overseas spending with Egyptian credit cards.
EG-Bank limits credit card spending to EGP 3,000 for international purchases, whereas Al Baraka lets its customers spend EGP 7,750.
Last week, Egypt’s largest private bank, Commercial International Bank (CIB), announced that it had reduced foreign currency withdrawal and purchase limits on its credit cards.
The CIB limits monthly foreign currency purchases to EGP 15,000 for entry-level cards and EGP 100,000 for premium options.
On their part, Abu Dhabi Islamic Bank Egypt has also significantly reduced the international cash withdrawal limits on its credit cards. Cardholders can now withdraw a maximum of EGP 1,545 per month, down from EGP 3,090 daily and EGP 15,453 monthly.
The Egyptian economy is currently under pressure as the US dollar continues to rise in the black market, reaching EGP 57 per dollar and poised to break the EGP 60 barrier.
HSBC’s latest forecast in December 2023 has also predicted a devaluation to EGP 40-45 against the US dollar in the first quarter of 2024, potentially straining Egypt’s import costs and reducing local purchasing power.
