What Egypt’s currency controls mean for international payments

Egypt is a popular destination for tourists, expats, and digital nomads. It is also an African hub for freelancers working with international clients, with many local businesses serving global customers. A large proportion of Egypt’s population deals with international payments. Meanwhile, the country has a complex relationship with its foreign exchange market, making it challenging to manage international payments.

As efforts continue to stabilise the Egyptian pound (EGP), the Central Bank of Egypt (CBE) has stringent controls amid lingering external pressures, including global conflicts, declining Suez Canal revenues, and high external debt. The article examines Egypt’s currency controls and their implications for individuals and businesses managing international payments.

Understanding Egypt’s currency controls

Currency controls are regulations implemented by the government designed to manage the flow of foreign currencies in and out of the country. In Egypt, these measures are implemented by the Central Bank of Egypt (CBE) to protect the national economy and maintain foreign exchange reserves. Such controls often include:

• Restrictions on foreign currency withdrawals and deposits:
• Limits on international card transactions
• Centralised approval for large foreign payments or transfers
• Monitoring of inflows and outflows to combat capital flight

The intention behind these rules is to maintain the stability of the Egyptian pound and prevent rapid depreciation. However, they also pose challenges for people who rely on cross-border transactions, such as digital nomads, international students, and freelancers working with global clients.

See also: Side hustle in Egypt? Here’s how to receive international payments

How Egypt’s currency control measures affect international payments

Egypt’s currency controls impose significant restrictions on international payments by limiting the outflow of foreign currency. This affects residents’ ability to pay for foreign subscriptions, import specific goods, and transfer large sums abroad. These are some of the implications of the country’s currency control for international payments:

• Restricted foreign currency access: Egyptian banks may require proof of transaction purpose, such as invoices, before approving foreign currency transfers. This was especially stringent for certain imports, with restrictions on the provision of foreign currency for goods such as mobile phones and certain food items.
• Blocked and declined online payments: Many local debit and credit cards issued by Egyptian banks are routinely blocked or declined for international transactions.
• Potential for currency depreciation: While the CBE has moved to a more flexible exchange rate under an IMF program, the Egyptian pound is still expected to depreciate moderately over the medium term. The currency's performance remains sensitive to foreign investment flows and domestic reforms. This volatility can affect financial planning and cause uncertainties for individuals converting from foreign currencies.
• Use of alternative channels: Due to official restrictions, some individuals and businesses have historically resorted to black-market trading, though the CBE’s crackdown has reduced its prevalence. The emergence of digital payment platforms like Grey has thrown a lifeline to freelancers, expats, and digital nomads navigating these challenges, providing multi-currency accounts and more efficient transfer options.

Also read: How to get an instant USD debit card in Egypt

Managing international payments in Egypt with ease

Amid national currency controls that impede efficient cross-border transactions, individuals and businesses have digital payment solutions like Grey at their disposal. Grey offers multi-currency accounts supporting USD, EUR, and GBP, with low fees and no hidden charges. With a virtual USD debit card and competitive exchange rates, you can access an efficient, swift international payment solution in Egypt.

Get started on Grey today for international payments in Egypt with ease.

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