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  • Doaa Hamdy

(covid-19) and the Central Bank’s decisions crisis him to contain its impact on the Egyptian economy



The Central Bank decided to set a temporary daily limit for withdrawals and cash deposits at bank branches and ATMs to contain their impact On the Egyptian economy Whereas, the Governor of the Central Bank, Tariq Amer, issued a decision to set a daily temporary limit for deposits and cash withdrawals at bank branches At (10 thousand Egyptian pounds) for individuals and( 50 thousand Egyptian pounds )for companies, and hours later the central bank adjusted its previous decision after what The Federation of Industries sent an official letter to the Central Bank of Egypt, requesting that companies be excluded from the bank’s decisions regarding the daily withdrawal limits. The Federation's speech also included a number of key points that it submitted to the Central Bank in order to exclude companies as follows:  


first : As for the sectors that employ daily labor, the most important of which is the construction sector, agriculture, trade and small industries, where the establishments operating in those sectors need to withdraw in order to obtain the necessary liquidity to pay the wages of the daily workers working in them.

Second: Payments are made against the sale of crops to farmers such as the sugar beet crop in cash, which is the seasonal crop at the present time, as well as payment for the sale of live meat and poultry also in cash, and any disruption in the supply or payment system that results in either mortality in live meat and poultry or damage to crops That are supplied.

Third: There are many companies that pay the costs of transporting workers cars every day.

fourth: Companies need cash liquidity to deliver them to trucks to pay for the gates of fees on the roads (kartas) at the movement of trucks on highways, which range

(from 5 to 20 thousand pounds), depending on the load of each truck, and when this procedure is delayed, this causes congestion and a bottleneck at the gates . By permitting the exclusion of some entities, individuals, and transactions from the deposit ceiling decision, government deposits include "electricity, gas, water and oil, and are accepted without a ceiling with the necessity to adhere to the daily cash exchange limit, and corporate deposits are accepted" public-private "without maximum limits while adhering to the limits of exchange .


The Central Bank of Egypt confirmed accepting checks submitted for clearing without any maximum limits, and in the event that any check submitted to the counter exceeds

(10 thousand pounds), are spent in cash and the rest is either to open an account for the customer or transfer the rest of the amount to his account in another bank without commission or The exchange of the check is divided into several days, customers are allowed to pay credit card dues without maximum limits, and customers are allowed to pay any obligations on it with "letters of credit and letters of guarantee".


The remarks of Tareq Amer, the governor of the Central Bank, came about the reasons that called for these decisions, because we found individuals withdrawing money from banks while they did not need them. They withdrew (30 billion pounds) in the past three weeks. We want some discipline. We are in a society and we must think about others. I hope people understand that this is an organization of things in light of the current crisis. The new decisions aim to try to reduce purchasing power, counter inflation and preserve the country’s stock of basic commodities. And consumer price inflation in Egyptian cities fell to (5.3 percent in February) from (7.2 percent in January).  But the government expected last week to rise to (9.8 percent,) if the Corona crisis continues until December 2020, due to the high demand for some products such as medical supplies and disinfectants.


He mentioned that the volume of individual loans during the next 6 months amounts to

( 400 billion pounds), including credit cards,

He pointed out that there are (940 thousand citizens) who defaulted to pay off their loans, the old interest was raised from them,

at a value of 9 billion pounds, in addition to raising (40 billion pounds) from the troubled private sector companies from the old interest, adding: "What happened gives great satisfaction ... We also raised all The cases are about (220 thousand citizens )who face arrears cases ... and we will remove all cases from companies. " All of the above came within the scope of the measures taken by the Egyptian state in the face of the current global crisis.



written by

Doaa Hamdy

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