Egyptian Banks Now Offer Dollar Wire Transfers Without Prior Reservation

Indicating that the dollar shortage crisis has begun to fade, a number of Egyptian banks have issued wire transfers in dollars and allowed withdrawals from personal accounts in dollars immediately and without prior reservation.

Informed sources disclosed to that government-affiliated banks, in especially Al-Ahly of Egypt and Banque Misr, stopped working with advance booking, in how much the owner of the transfer used to inform the bank of the value of the transfer and request its withdrawal in dollars, while the bank provides the transfer amount to be contacted later.

The price of the dollar in Egypt records new highs against the pound

However, in recent days, most government bank branches have started to abandon these requirements related to the exchange of foreign wire transfers or withdrawals from personal accounts in dollars, which indicates the availability of dollars in banks.

Away from the official market, the foreign exchange black market is coming to an end with the continued collapse in demand for dollars by importers outside the official market, in light of the ability of the Egyptian banking sector to supply the quantities necessary to fully recover from the crisis of cargo storage in Egyptian ports.

A few days ago, specialists told that prices in the parallel market are close to dollar exchange rates in the official market and the difference between prices does not exceed £0.40. At the same time, there is no actual implementation and the transactions that take place are in limited ranges, with major traders stopping work and others fleeing.

The gap between the official and black market rates reached its apex during the last week of last year, when the off-market dollar registered a level of £38, but with the bank’s moves central to the file to end the crisis of stacked goods and its proximity to the end of the crisis, collapsed. The dollar’s exchange rate in the parallel market at a level close to its price in the official market.

The highest dollar exchange rate with Abu Dhabi Islamic Bank came in on Tuesday at £30.63 for buying, compared to £30.68 for selling. And with 24 banks led by the Central Bank of Egypt and the Commercial International Bank of Egypt, the exchange rate of the US green note stabilized at 30.58 pounds in purchase, compared to £30.68 in sale.

The lowest dollar exchange rate was in 4 banks, led by the National Bank of Egypt and Banque Misr, at £30.48 for the purchase, compared to £30.58 for the sale.
Since March last year, the foreign exchange market in Egypt has seen intense maneuvers by the Egyptian government and the Central Bank of Egypt to control the biggest crisis in the foreign exchange market since the start of the economic reform programs in early November 2016.

However, since last December, the government has managed to put an end to the crisis of the accumulation of goods in Egyptian ports, being able to release goods with a total value of between 17 and 18 billion dollars, which caused the elimination of violent speculation which was taking place on the black market.