Ahmed Kamel – Egypt Daily News
The National Bank of Egypt (NBE) has announced a reduction in foreign currency markup fees on credit card transactions made abroad. The fee has been lowered from 5 percent to 3 percent, a move aimed at easing costs for customers using their cards while traveling internationally.
In addition to this change, the bank confirmed that it continues to offer foreign currency for travel purposes, up to the maximum legal limits permitted through Egyptian airports and ports. Under Egyptian customs and financial regulations, travelers are allowed to carry up to 10,000 US dollars or the equivalent in other foreign currencies when entering or leaving the country. While any amount of foreign currency may be brought into Egypt, travelers must declare amounts exceeding that limit through a customs declaration. Upon departure, travelers may carry the remaining amount previously declared, provided they have supporting documentation.
Central Bank clarifies rules on card usage abroad
The Central Bank of Egypt (CBE) also issued new instructions regarding credit card use outside the country, canceling a previously enforced rule that required banks to verify international card usage with passport exit and entry stamps. This verification had to be completed within 90 days of enabling international spending limits.
This change annuls Clause 2 of the circular dated October 29, 2023, which mandated that banks track customer travel to ensure card usage occurred abroad. Despite this cancellation, the central bank emphasized that it still has the authority to monitor overseas transactions to confirm they are conducted while the customer is outside Egypt.
If customers are unable to provide valid evidence of international usage, banks must follow procedures outlined in Clause 3 of the same circular and adhere to the updated guidelines issued on February 11, 2024. These updates are part of a broader framework aimed at tightening control over the use of credit cards for foreign currency transactions.
Regulatory context
The adjustments come amid broader efforts by Egyptian financial authorities to regulate foreign currency access more efficiently and ensure it is used for legitimate purposes. This includes controlling speculative behavior and unauthorized currency trading through credit card systems.
The reduction in markup fees follows increasing demand from travelers and professionals for more reasonable terms for international transactions, particularly during times of economic pressure and currency fluctuation.
By easing the cost of currency conversion and simplifying requirements for cardholders, the National Bank of Egypt aims to support customers while maintaining compliance with central bank regulations.
