International money transfer policy: an overview of Africa regions (series 2. Egypt)
According to the Cointelegraph data, in 2019 Egypt became the fifth highest remittance recipient country worldwide ($26.4 billion), following India, China, Mexico and the Philippines.
According to the report by ICAEW and Oxford Economics, remittance income is a major economic factor for most African countries. Nigeria was the biggest receiver of remittances on the continent during 2018–2019. Egypt was the second biggest receiver of remittances on the continent.
Money transfer regulation
According to Egypt’s central bank’s issued regulation, the main financial regulatory body, the limits on international currency transfers is an annual $100,000 cap on individuals’ transfers abroad. The previous limits were for individuals to make cash and/or wire deposit of an amount exceeding $10,000 per day or $50,000 per month. But these limits were canceled in March, 2016.
Restrictions exist for local businesses as well. Before 2016, there was a $50,000 monthly deposit cap on non-priority imports. The amount of US dollars that local companies in high-priority sectors (specific sectors only) can deposit with banks for import purposes is up to $250,000 per month. However, in 2016, CBE increased the deposit limit to $1 million per month and canceled a daily deposit limit. But an exporting company must satisfy specific conditions in order to benefit from this increased cap.
The tourism authorities advise that travelers are not allowed to bring more than 5,000 EGP (approximately $320) in Egypt in local currency, but they can bring up to $10,000 or the equivalent in foreign currency and exchange there.
Bank wire transfer fees
Money transfer fees vary from bank to bank, but on average they are up to $45.
Payment systems operation limits
According to the CBE online documents, payment providers engaged in money transfer systems are those enlisted under the category of small merchants (non bank) whose online proceeds from all alternative delivery channels used do not exceed three million Egyptian pounds annually ($191 000), which may be modified by the CBE Governor.
Mobile e-wallets balance regulation
Egypt has a special regulation for mobile e-wallets. Limited balance of EGP 10,000 ($600), EGP 6,000 ($382) daily transfer and EGP 50,000 ($3000) monthly. The main issuers of mobile e-wallets are banks. Here is a list of some mobile e-wallets: https://www.vapulus.com/en/best-e-wallets-in-egypt-2019/
Payment Services Using Prepaid Cards Regulating
Documents issued CBE that regulate prepaid cards services say:
- The limit of the card balance shall be EGP 20,000 (appox. $1 200).
- Daily limit for withdrawing, transferring and purchasing shall be EGP 12,000 ($760) for each bank customer
- Monthly limit for withdrawing, transferring and purchasing for each bank customer, who is an individual, shall be EGP 100,000 ($6 300) and, for companies and micro-enterprises, shall be EGP 200,000 ($12 700).
- The maximum No. of prepaid cards that may be issued by one bank to a person shall be one card.
ATMs
ATMs in Egypt usually charge $2.50 per transaction, excluding bank fees. Withdrawal limits depend on ATMs, but some ATMs have a EGP 2,000 limit per one transaction. Some banks allow large withdrawals, for instance, Banque Misr, Banque du Caire, CIB, Egyptian American Bank and HSBC.
Transfer money to Egypt
Each country has its own policy on how much money can be transferred, type of payment methods or how much fees will be applied. People who intend to send money to Egypt need to check not only Egypt’s policy on money transfers, but also the policy of the local country from where they initiate the transfer. If the money is sent via bank wire, both banks will charge a service commission and exchange rate. When using online payment providers like WesternUnion, Traswise, Moneygram, or STICPAY, clients will be charged a service commission and exchange rate charge too.
Crypto
Under Islamic law Egypt banned all cryptocurrencies for a long time.
However, according to the news from Cointelegraph in 2019, the Central Bank of Egypt (CBE) announced that it is working on a draft law for crypto-related activities. The Board of Directors of the Central Bank of Egypt (CBE) will have the right to regulate cryptocurrencies and licenses to do business.
Summary
Sending money to and from Egypt you need to remember:
- the limit on international currency transfers is an annual $100,000 cap
- payment providers can proceed only up to $191 000 annually
- mobile e-wallets limited balance is $600, $382 daily transfer and $3000 monthly transfer
- prepaid cards issued in Egypt have a balance limit of $1 200, the daily limit for withdrawing, transferring and purchasing is $760, monthly — $6 300 and, for companies and micro-enterprises — $12 700
- some ATMs have a EGP 2,000 limit per one transaction, but it mostly depends on bank
- under Islamic law, Egypt has a ban on all cryptocurrencies, but thinking about regulations
STICPAY for Egypt
STICPAY can offer diverse payment methods Visa, Mastercard, International Bank Wire and more here . Also, users from Egypt can order prepaid STIC prepaid cards after they have registered in our e-wallet. With STIC card clients can withdraw cash in ATMs and purchase offline wherever UnionPay is accepted in Egypt.
Links:
https://www.westernunion.com/eg/en/send-money.html
https://www.egypttoday.com/Article/3/33215/CBE-approves-raising-mobile-cash-transfer-limit-in-Egypt
https://www.arabnews.com/node/1115201/business-economy
https://www.ceifx.com/news/472/Egypt-Lifts-Its-Last-Remaining-Foreign-Currency-Restriction
https://www.businessinsider.com/ap-egypt-lifts-limit-on-foreign-currency-transfers-2017-6
https://www.coindesk.com/egypt-lifts-ban-will-allow-licensed-cryptocurrency-companies
https://www.timedoctor.com/blog/whats-cheapest-method-send-money-egypt/
https://www.afi-global.org/sites/default/files/publications/2018-08/AFI_Egypt_Report_AW_digital.pdf
https://www.tripsavvy.com/currency-in-egypt-4581266
file:///C:/Users/Adena%20Software-17/Downloads/Payment%20Services%20Using%20Prepaid%20Cards%20Regulating%20(2).pdf
http://www.riad-riad.com/en/publications/recent-foreign-currency-regulation
https://corporatefinanceinstitute.com/resources/careers/companies/top-banks-in-egypt/
