Banks in Egypt have started raising the withdrawal limits on credit cards, that were put in place to preserve scarce foreign currency liquidity in the banking system over recent years.
The decision comes as a part of the comprehensive economic reform program, which is being implemented in coordination with the government to enhance foreign exchange flows.
Several banks have announced an increase in the amounts authorized for use in foreign currency via credit cards, following a period of restrictions placed on card usage abroad due to misuse and exploitation via currency speculation in the exchange market.
The National Bank of Egypt announced that it increased the limits for withdrawals of cash and purchases on credit cards outside Egypt based on the type of card, with Visa Classic, MasterCard Standard, and MasterCard EgyptAir cards now worth LE 2,500 instead of LE 1,500 for cash withdrawals and LE 25,000 instead of LE7,000 for purchases.
Banque Misr adjusted the international spending limits on both the Golden and Islamic Gold cards to be LE10,000 for purchases instead of LE6,000 and LE3,000 for cash withdrawals.
On Monday, days after the value of the Egyptian pound decreased by around 58 percent against the dollar, Commercial International Bank (CIB) raised its limits on credit cards.
CIB has increased limits on credit card withdrawals abroad for the second time in less than a week. Withdrawal limits now start from LE3,500 to LE10,500, equivalent to around $72 to $216 based on the exchange rate at the time of writing, and limits on monthly purchases at CIB now range from LE75,000 and LE200,000, or around $1,549 to $4,132, depending on client account criteria.
The Arab African International Bank (AAIB), a joint venture between the Central Bank of Egypt (CBE) and the Kuwait Investment Authority (KIA), reduced limits on Monday as well.
Withdrawal limits went up for AAIB clients as well, now ranging from LE10,000 to LE25,000, or the equivalent of around $206 to $516, while the monthly limit on purchases ranges from LE50,000 to LE150,000 ($1,033 to $3,099).
