Egypt's economists praise decision to lift caps on money transfers
The Central Bank of Egypt is hoping to stabilize the country’s economy with its decision to lift caps on foreign exchange transfers.
Egypt’s economists have lauded a recent decision by the Central Bank to lift caps on foreign exchange transfers, saying that the decision sends positive messages about the country’s improving monetary conditions as well as restoring confidence in the national economy.
“The decision highlights that the dollar shortage that took place over the past few months is finally easing,” economist Ahmed el-Shami told Al-Monitor. Shami said that the decision will encourage investors to pump more money into the country and also prompt Egyptians abroad to freely transfer their money.
According to the Central Bank decision, banks will lift the $100,000 annual cap for foreign currency transfers that was enforced shortly after the January 25 Revolution that ousted former President Hosni Mubarak.
The foreign currency crunch abated after Egypt floated its currency in November and secured a $12 billion loan from the International Monetary Fund over a period of three years.
