The Gold and Jewelry Division of the Chambers of Commerce is seeking a special exemption for the gold sector from recent instructions issued by the Central Bank of Egypt (CBE). These instructions mandate that merchants must not impose any additional fees or commissions on customers using electronic payment methods—including debit and credit cards—to ensure price parity between cash and electronic payments.
While the Division emphasized its full support for the state's drive toward digital transformation and financial inclusion, it maintains that the nature of the gold and jewelry business presents unique challenges that make full implementation of the decision in its current form difficult.
Eng. Lotfy Mounib, Vice President of the Gold and Jewelry Division, stated that while the sector values the state's efforts to expand non-cash payments, gold trading differs from traditional commercial activities due to its direct link to global prices that fluctuate by the second. This results in extremely narrow profit margins on certain products, particularly gold bullion and coins.
He explained that gold is regarded more as a "store of value" than a consumer commodity. Its prices are determined in real-time by international exchanges, a factor that previously led to its exemption from certain commercial policies, such as the 14-day return policy, due to its specialized pricing and value volatility.
Key Challenges Outlined by the Division:
Commission vs. Margin: Bank commissions on electronic payments can exceed 1% of the transaction value. In many cases, this exceeds the "workmanship" (masnaeya) margin itself, which may not exceed 0.5% for products like bullion and coins. Consequently, the merchant might bear part of the cost of the raw material itself, rather than just losing profit.
Economic Imbalance: This situation creates a structural defect in the business; a merchant may find themselves selling gold at a price lower than its actual purchase cost after bank commissions are deducted. Conversely, when buying gold back from customers, the merchant remains committed to full cash payment without any deductions.
Mounib confirmed that the Division has already initiated official steps following the announcement. They are communicating with relevant authorities to find regulatory solutions that balance financial inclusion requirements with the unique nature of the gold market.
Proposed solutions include:
Granting the sector an exemption that allows charging the customer for the banking service fee as a financial charge linked to the payment method.
Eliminating bank commissions on gold transactions altogether to maintain market stability and ensure fair application.
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