CBE Facilitates Restrictions on Credit Card Usage outside Egypt

The Central Bank of Egypt (CBE) decided, on Thursday, to fully open the credit card usage limits for any customer without the need to submit any documents, as soon as he contacts customer service at the card-issuing bank or visits a branch for this purpose.

CBE also eased previous restrictions on the use of credit cards abroad, and removed the requirement for customers to provide proof of travel before their departure.

Based on the Central Bank’s statement, customers will now need to provide proof that the card was used while traveling abroad, within 90 days of returning to Egypt.

Proof may be in the form of arrival and departure stamps on passports, or by sending proof of continued residence abroad if the trip exceeds 90 days. However, customers must still notify the customer service departments in banks before travelling.

The Central Bank said: “Failure to comply with the updated rules will lead to reporting to the Egyptian Credit Inquiry Company (I-Score), and including the customer on the list of individuals who are not eligible to use credit cards or (take advantage of banking services) in the future.”

On October 17, the Central Bank of Egypt had asked commercial banks to impose restrictions on customers’ use of credit cards in transactions in foreign currencies at home and abroad, and this was the second time within a week that it had taken strict measures regarding cards, however, the restriction pushed speculators to buy more foreign currencies from the parallel market, which lead to its fx increase. 

The new decision is expected to give a severe blow to the black market.