The Central Bank of Egypt (CBE) issued an update to the current instructions regulating currency exchange companies and the rules for licensing, monitoring and supervising them.
This comes in line with developments in the work of the exchange companies sector, supporting their performance and enhancing the efficiency of their management.
CBE said in a statement, Sunday, that the new regulations and instructions comes in light of the requirements of the Central Bank and Banking System Law, and in belief in the important role of exchange companies that complement the role of the banking system.
"It should be noted that the rules have been prepared in accordance with the best international practices followed in this regard and in a manner appropriate to the nature of the work of exchange companies in Egypt," the bank said.
It added that the rules include instructions for requirements and procedures for licensing and registration, including the minimum issued and paid-up capital.
The central bank pointed out that the rules of control and supervision requirements, include automation systems, governance, and outsourcing, as well as the rules of ownership in the capital of those companies and merger deals.
In a statement, CBE said that it is permissible for any exchange company to merge with other companies to form a new company, provided that it obtains prior approval from the bank’s board of directors.
The statement added that the parties to the merger must submit a request to the Central Bank to obtain the initial approval regarding the plan to guarantee the rights of workers in the companies involved in the merger, and any other data or documents required by the Central Bank.
The bank Noted that the existing exchange companies have been given a period of one year to meet the requirements from the date of issuance of the instructions, in order to enable them to comply with the requirements contained therein.
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