International Money Transfer Policy: An Overview Of Africa Regions (Series 2. Egypt)

According to the Cointelegraph data, in 2019 Egypt became the fifth-highest remittance recipient country worldwide ($26.4 billion), following India, China, Mexico and the Philippines. According to the report by ICAEW and Oxford Economics, remittance income is a major economic factor for most African countries. Nigeria was the biggest receiver of remittances on the continent during 2018–2019. Egypt was the second.

Money transfer regulations

According to regulations issued by Egypt’s central bank, the main financial regulatory body, the limit on international currency transfers is an annual $100,000 on individual transfers abroad. The previous limits were for individuals to make cash and/or wire deposits of an amount exceeding $10,000 per day or $50,000 per month. But these limits were cancelled in March 2016.

Restrictions exist for local businesses as well. Before 2016, there was a $50,000 monthly deposit cap on non-priority imports. The amount of US dollars that local companies in high-priority sectors (specific sectors only) can deposit with banks for import purposes is up to $250,000 per month. However, in 2016, CBE increased the deposit limit to $1 million per month and cancelled the daily deposit limit. Exporting companies must satisfy specific conditions in order to benefit from this increased cap.

The tourism authorities advise that travellers are not allowed to bring more than 5,000 EGP (approximately $320) to Egypt in a local currency, but they can bring up to $10,000 or the equivalent in foreign currency and exchange there.

Bank wire transfer fees

Money transfer fees vary from bank to bank, but on average they are around $45.

Payment systems operation limits

According to the CBE online documents, payment providers engaged in money transfer systems are those enlisted under the category of small merchants (non-bank) whose online proceeds from all alternative delivery channels used do not exceed three million Egyptian pounds annually ($191,000), which may be modified by the CBE Governor.

Mobile e-wallets balance regulations

Egypt has special regulations for mobile e-wallets. There is a maximum balance of EGP 10,000 ($600), a maximum daily transfer of EGP 6,000 ($382) and a maximum monthly transfer of EGP 50,000 ($3000). The main issuers of mobile e-wallets are banks. A list of some mobile e-wallets can be found here.

Regulations for Payment Services Using Prepaid Cards

Documents issued by the CBE that regulate prepaid cards services say:

• The limit of the card balance is EGP 20,000 (approx. $1 200).
• The daily limit for withdrawing, transferring and purchasing is EGP 12,000 ($760) for each bank customer
• The monthly limit for withdrawing, transferring and purchasing for individuals is EGP 100,000 ($6 300) and for companies and micro-enterprises is EGP 200,000 ($12 700).
• Each bank may issue only one card to each individual customer

ATMs

ATMs in Egypt usually charge $2.50 per transaction, excluding bank fees. Withdrawal limits depend on ATMs, but some ATMs have a limit of EGP 2,000 per transaction. Some banks which allow larger withdrawals are Banque Misr, Banque du Caire, CIB, Egyptian American Bank and HSBC.

Transfer money to Egypt

Each country has its own policy on how much money can be transferred, how many fees will be applied and the various payment methods. People who intend to send money to Egypt need to check not only Egypt’s policy on money transfers but also the policy of the local country from where they initiate the transfer. If the money is sent via bank wire, both banks will charge a service commission and exchange rate. When using online payment providers like WesternUnion, Traswise, Moneygram, or STICPAY, clients will be charged a service commission as well as exchange fees.

Crypto

Under Islamic law, Egypt banned all cryptocurrencies for the foreseeable future. However, according to the news from Cointelegraph in 2019, the Central Bank of Egypt (CBE) announced that it is working on drafting a law for crypto-related activities. The Board of Directors of the Central Bank of Egypt (CBE) will have the right to regulate cryptocurrencies and licenses to do business.

Summary

When sending money to and from Egypt you need to remember:

• the limit on international currency transfers is an annual $100,000
• payment providers can process only up to $191 000 annually
• the maximum balance of mobile e-wallets is $600 with maximum transfers of $382 daily and $3000 monthly
• the maximum balance of prepaid cards issued in Egypt is $1 200 with a daily limit for withdrawing, transferring and purchasing of $760, $6 300 monthly for individuals and $12 700 monthly for companies and micro-enterprises
• some ATMs have EGP 2,000 limit per transaction, but it mostly depends on the bank
• under Islamic law, Egypt has a ban on all cryptocurrencies, but officials are thinking about making regulations

STICPAY for Egypt

STICPAY can offer diverse payment methods such as Visa, Mastercard, International Bank Wire. You can find the full list here. Also, users from Egypt can order STIC prepaid cards after they have registered in our e-wallet. With a STIC card, clients can withdraw cash from ATMs and purchase offline wherever.

Source:

Western Union

Reuters - In a long-awaited move, Egypt central bank scraps currency transfer limit

Egypt Today - CBE approves raising mobile cash transfer limit in Egypt

Reuters - UPDATE 2-Egypt central bank to cancel $100,000 individual bank transfer limit

Arab News - Egypt central bank removes foreign currency transfer limit

Bloomberg - Egypt Lifts Remaining Currency Restrictions as Crunch Abates

Business Insider - Egypt lifts limit on foreign currency transfers

CoinTelegraph - Egyptian National Bank Turns to Blockchain to Boost Remittance Business

CoinDesk - Egypt Lifts Ban, Will Allow Licensed Cryptocurrency Companies

Time Doctor Blog - What's the Cheapest Method to Send Money to Egypt?

AFI Global - FINANCIAL INCLUSION THROUGH DIGITAL FINANCIAL SERVICES AND FINTECH: THE CASE OF EGYPT

Trip Savvy - Currency in Egypt: Everything You Need to Know

Riad&Riad - Recent Foreign Currency Regulations in Egypt

Corporate Finance Institute - Banks in Egypt - Overview and Guide to Top 10 Banks in Egypt

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