The Central Bank of Egypt (CBE) has scrapped controls on currency transfers abroad with the easing of Egypt’s long-running foreign exchange shortages and the rise in international reserves. Individuals will now no longer be restricted to a maximum of $100,000 once a year, under the strict controls placed by the CBE on the movement of foreign currency after the 2011 revolution in order to limit the flight of capital.
An acute shortage of foreign exchange strangled the economy in recent years and sharply reduced international reserves which fell from $36bn in 2010 to $15.5bn at end-July 2016. As part of a $12bn three-year bailout loan to Egypt from the IMF to support economic reforms, the CBE in November floated the currency whose value fell by more than half from its peg of around $1=E£8.8 (MEES, 4 November 2016); it now stands at $1=E£18.15. (CONTINUED - 390 WORDS)