The Central Bank of Egypt raises the maximum limit for cash withdrawals for individuals and companies from their bank accounts.
Announce Egyptian Central Bank On Monday, the maximum limit for daily cash withdrawals for individuals and companies from their bank accounts, whether inside branches or via ATMs, was raised, according to a circular sent to banks on Monday.
The Central Bank of Egypt raises cash withdrawal limits
The Central Bank of Egypt has raised cash withdrawal limits, so that individuals and companies can now make cash withdrawals of a maximum of 250,000 pounds per day from bank branches, up from 150,000 pounds previously.
The Central Bank of Egypt also raised the maximum daily cash withdrawal from ATMs to 30,000 pounds, instead of 20,000 pounds.
Banks have been operating within the previous limits for cash withdrawal since August 2022, in an attempt by the Central Bank of Egypt to curb accelerating inflation rates.
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Inflation rate and monetary policy
The annual inflation rate in Egyptian cities fell to 33.3% last March, from 35.7% last February, driven by a slowdown in the increase in food prices as merchants calculated a lower exchange rate, according to data issued by the Central Agency for Public Mobilization and Statistics.
The Central Bank of Egypt had confirmed simultaneously Float the pound Last month, he committed to “continue his efforts to shift towards a flexible inflation targeting framework, by continuing to target inflation as the nominal anchor of monetary policy,” in response to the long-term recommendations he made. International Monetary Fund During his negotiations about the loan with the government.
Expectations of the inflation rate during the coming period
However, inflation is likely to remain high, despite slowing in March. “The effects of the depreciation of the pound are expected to remain in play over the coming months, and thus inflation will remain high throughout the rest of 2024,” said James Swanston, an economic analyst. For the Middle East and North Africa region at Capital Economics, in a note.
Expectations indicate that the inflation rate will remain above 25% at the end of the year, driven by the devaluation of the pound and increased prices, Swanston added.
Other signs that inflationary pressures will continue include an increase in the minimum wage for private sector workers, which recently came into force, and the possibility of further cuts in subsidies, HSBC economist Simon Williams said in a note.
