The Clap
Several banks are placing restrictions on cash withdrawals abroad through debit or credit cards, aiming to control the levels of liquidity that banks have in foreign currency (FCY).
Why
Banks are trying to preserve FCY so that their FX liabilities are not greater than their assets.
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The Deets
The banks that approved these restrictions are CIB, HSBC, Banque Misr, and First Abu Dhabi Bank.
Why this Matters
The CBE said that net Egyptian assets in FCY amounted to about -$20 billion, meaning that the country’s liabilities in FCY are greater than its assets.
