Since Egypt announced in March this year that importers can only use letters of credit to import goods, a large backlog of imported goods cannot be cleared in ports.
The Central Bank of Egypt announced the abolition of the documentary letter of credit system.
ACCORDING TO AN EGYPTIAN PORTAL MASRAWY REPORT ON DECEMBER 29, THE CENTRAL BANK OF EGYPT TODAY ANNOUNCED THE Abolition OF THE DOCUMENTary LETTER OF CREDIT SYSTEM AND THE RESTORATION OF THE PROCESSING OF ALL IMPORT BUSINESS OF RECEIVING DOCUMENTS.
In the notice issued on its website, the Central Bank of Egypt said that the cancellation decision referred to the notice issued on February 13, 2022 to stop the processing of collection documents when all import operations are implemented, only to process documentary letters of credit when importing business, and exceptions to subsequent decisions.
The Central Bank of Egypt issued a notice on October 27, 2022 to increase the value of goods excluded from the decision from $5,000 or other currencies equivalent to $500,000 or other currencies equivalent, and announced the phasing out of import restrictions until they were completely lifted by the end of the year.
It is understood that in March this year, the Central Bank of Egypt (CBE) decided that from March, Egyptian importers could only use letters of credit to import goods, and instructed banks to stop processing exporter collection documents.
After the announcement of the decision, the Egyptian Chamber of Commerce, the Federation of Industry and importers filed complaints that the move would lead to supply problems, raise production costs and local prices, and have a serious impact on small and medium-sized enterprises that are difficult to obtain letters of credit, and called on the government to consider carefully and withdraw the decision.
In October, the Central Bank of Egypt said that it would phase out this restriction by the end of the year.
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Post time: Dec-30-2022