The decision of the Central Bank of Egypt to cancel the maximum deposit limit and increase the maximum daily withdrawal limit at bank branches may be due to two main reasons, said the economist and former deputy deputy governor of the Central Bank of Egypt.
Geneina added that the first reason is due to the lifting of restrictions on the movement of banking funds in local and foreign currencies, as this is one of the procedures favored by the International Monetary Fund for countries wishing to obtain a funding or support from the Fund. .
Geneina added that the second reason is due to repeated requests from businessmen and business owners as well as individuals to cancel the daily deposit requirement and increase the maximum limit for cash withdrawals, especially in light of high prices and the depreciation of the pound. against the US dollar.
Geneina expected the move to 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 at branches or ATMs for businesses and individuals, and raised the maximum daily withdrawal limit at bank branches to LE 150,000 from LE 50. 000 LE, while maintaining the daily ATM withdrawal limit at LE 20,000.
Hani Aboul Fotouh, banking expert, hailed the Central Bank’s decision to set a limit on daily withdrawals as a correct decision in the context of limiting the risks of spreading the coronavirus through the treatment of paper currencies, considered as an appropriate medium. to transmit the virus infection.
Reducing paper money transactions is one of the measures to reduce the risk of infection transmission by relying on bank transfers and electronic payment methods such as bank cards and mobile phone wallets, a he added.
In this regard, banks have canceled expenses related to transfers and the use of electronic payment methods and tools and ATMs, Aboul Fotouh said.
He explained that the Central Bank’s decision provides exceptions in certain cases, including government deposits, business deposits, acceptance of clearing checks, authorization of payment of credit card charges and payment customer obligations related to letters of credit and letters of guarantee.