The Central Bank of Egypt (CBE) demanded that local banks prioritise directing their foreign exchange liquidity to cover the importation of commodities, according to the CBE’s letter to banks.
On Thursday, the CBE introduced regulations for banks to obtain dollars through the auctions offered three times a week.
The CBE demanded that banks maximise their of foreign exchange resources, especially those suffering from limitations in their own resources.
The CBE urged banks to arrange credit facilities with correspondent banks abroad to finance letters of credit, as is customary in financing foreign trade operations all over the world.
According to the new regulations set by the CBE, the banks’ acquisition of dollars through the auctions offered by CBEs depends on the effectiveness of these banks in providing the market’s foreign exchange requirements.
