The Central Bank of Egypt (CBE) has recently announced that it is lifting restrictions on credit card usage for travelers abroad. This will facilitate the use of credit cards for foreign currency transactions and limit the difficulties faced by bank users.
As part of its broader efforts to support the Egyptian economy and its citizens, and to crack down on the misuse of credit cards, the CBE has decided to ease restrictions. According to the CBE’s release, travelers can use their credit cards abroad without any restrictions as long as they inform their bank about their travel plans and provide proof of their travel within 90 days.
Credit card users in Egypt must now prove that they used their cards while traveling abroad and submit proof of travel, such as departure and arrival stamps on their passport or proof of their continued stay abroad, to their issuing bank within 90 days of notifying the bank.
If they fail to do so, their bank will alert the Egyptian Credit Bureau (I-Score), which will then place them on its “negative list.” This means that the card user will be prohibited from issuing new credit cards or benefiting from certain banking services.
The CBE’s decision to blacklist credit card users who misuse their cards is part of its efforts to support the Egyptian economy and prevent foreign currency shortages.
In a prior statement released earlier this month, the central bank directed banks to curb foreign currency credit card limits.
The CBE instructed banks to require credit card users to submit documents to their bank in order to be able to use their credit cards for foreign currency transactions abroad, and was issued due to some users misusing their cards and withdrawing cash abroad despite not traveling.
