Urgent| The Central Bank cancels the documentary credits decision | banks

A short while ago, in the financial and banking circles in Egypt, news of the Central Bank of Egypt canceling the documentary credits decision to facilitate import and return to work with the documentary collection mechanism.

In this regard, a number of banking sources revealed that the Central Bank canceled the documentary credits and returned to work with the documentary collection mechanism, as it allowed the use of the balances of the parent company in foreign currencies in local banks resulting from an activity to implement the import process provided that they are sold to the bank and the bank resells them without a margin Buying and selling.

The Central Bank cancels the documentary credits decision

The sources indicated that a meeting was held yesterday, Monday, under the chairmanship of Gamal Najm, Deputy Governor of the Central Bank, for banking stability, in which it was emphasized that the proceeds of cash deposits of companies in foreign currencies resulting from export operations with neighboring countries (Libya, Syria, Sudan, Palestine, Iraq, Yemen) will be accepted and used in implementing Import operations, taking into account the proportion of the value of deposits with the size and nature of the customer’s usual activity and the value of the documents indicating the export process and the Source’s fulfillment of a true copy of the customs declaration approved by each of the competent customs branch of the General Organization for Export and Import Control – Foreign Trade Sector in the Ministry of Trade and Industry and This is in accordance with the two circulars issued by the Central Bank on May 13, 2015 and October 20, 2015, provided that the Central Bank is referred to in case of export and cash deposit with any country other than the mentioned countries.

The sources also stated that it was emphasized to follow the established limit according to the Minister of Trade and Industry Decision No. 126 of 2022 that imports are released for private use up to 25 thousand US dollars once every 6 months, while more than 25 thousand US dollars are released using Form 4 Taking into account compliance with the instructions of the Central Bank issued No. 49 dated February 13, 2022 and subsequent amendments

The meeting also resulted in the electronic goods that are assembled in the Arab Republic of Egypt and consist of a local manufacturing part in addition to the imported foreign component, emphasizing that this foreign component is excluded from the Central Bank’s instructions issued No. 49 dated February 13/2022 and is accepted Shipping documents as they are production requirements