The Central Bank of Egypt (CBE) says it will placing a 1% “entrance fee” on fresh foreign currency portfolio investments that enter through the repatriation mechanism starting from Sunday, December 3, Invest-Gate reports.
“This will not, in any way, affect balances held before December 3, 2017,” a CBE statement reads.
This decision comes one year after Egypt liberalized its foreign currency exchange rate back in November 2016, leading to the drop of the value of the Egyptian pound to more than half and the rise in inflation.
The bank will keep the 0.5% exit fee on the repatriation system, according to the central bank’s statement.
Last week, the central bank lifted all previously-imposed restrictions on USD deposits and withdrawals for importers of non-essential goods.