Economist explains recent CBE decision on cash deposit, withdrawal limits

Economist explains recent CBE decision on cash deposit, withdrawal limits

The Central Bank of Egypt’s decision to cancel the maximum deposit limit and increase the maximum daily withdrawal limit from bank branches may be due to two main reasons, Economist and former Deputy Assistant Governor of the Central Bank of Egypt, said.

Geneina added that the first reason is due to the lifting of restrictions on the movement of bank funds in local and foreign currencies, as this is one of the procedures preferred by the International Monetary Fund for countries that wish to obtain financing or support from the Fund.

Geneina added that the second reason is due to the repeated demands of businessmen and owners of companies as well as individuals to cancel the daily deposit requirement and increase the maximum limit for cash withdrawals, especially in light of the high prices and the depreciation of the pound against the US dollar.

Geneina expected that this decision would reflect positively on the performance of the Egyptian Stock Exchange at the start of trading next week.

On Thursday, the Central Bank of Egypt canceled the maximum deposit limit from branches or ATM machines for companies and individuals, and raised the maximum daily withdrawal limit from bank branches to LE150,000 instead of LE50,000, while