Egyptian Banks Suspend Use of New Credit Cards Abroad for 6 Months

A number of Egyptian banks suspended the use of new credit cards abroad for a period of up to 6 months from the date of issuance, while other banks were content to suspend use abroad for a period of only 3 months.

The banks clarified in written instructions, which were directed last Thursday to all affiliated branches to implement this decision starting from December 20.

These steps are a continuation of the restrictions imposed by banks based on instructions from the Central Bank of Egypt (CBE) to stop the misuse that has been monitored on foreign currency transactions abroad and at home through credit cards.

Among the most prominent banks that suspended the use of new credit cards for a period of 6 months from the date of issuance are National Bank of Egypt, Banque Misr, and International Commercial Bank (CIB), provided that reactivation is allowed after this period according to the limits available at the time.

While other banks, such as Arab African International (AAIB) and Qatar National (QNB), were content to stop international use for only 3 months from the date of issuance.

A retail banking official at a state-owned bank said that the significant increase in customer demand for issuing new credit cards, and the significant growth in the use of these cards abroad at some banks, are behind these new instructions.

He added that the Central Bank recommended banks in verbal instructions last week to address any abnormal uses that lead to demand for foreign currency in unjustified ways.

He pointed out that the Central Bank provides flexibility to banks in dealing with these cases, so banks' decisions regarding using new cards abroad varied, according to each bank.

Banks in Egypt informed their customers a few days ago of limiting use to one credit card in international transactions, whether for purchases or cash withdrawals - if the customer has more than one credit card.