Fun

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears

News Feed - 2020-03-31 03:03:08

Egypt Limits Bank and ATM Withdrawals Citing Rampant Cash Outflow and Coronavirus Fears


On Sunday, the Central Bank of Egypt (CBE) announced it had instructed financial institutions in the country to put withdrawal limits in place for cash. Regional reports disclose that Egyptian residents can only withdraw 10,000 Egyptian pounds ($640) and businesses can only withdraw 50,000 pounds ($3,200). The CBE cited concerns over the covid-19 outbreak and also limited automated teller machine (ATM) withdrawals to 5,000 pounds per day.


Also read: Bitcoin Mining Roundup: BTC Regains 100 Exahash, Miners Close Shop, Pre-Halving Shake-Up Central Bank of Egypt Enforces Cash Withdrawal Limits at Bank Branches and ATMs


The global economy has been suffering from the economic hardships tied to the covid-19 outbreak that has ravaged multiple countries. The coronavirus scare has caused people to question the use of cash due to the uncleanliness of bills. For instance, at the beginning of March, the U.S. central bank told the public it was holding U.S. dollars repatriated from Asian countries in a separate area. Further, the faltering economy has also caused banks in countries like the U.S. and Germany to place withdrawal limits on cash.


Now Egyptians are facing the same cash issues and the country’s central bank is imposing cash withdrawal limits across the board. In addition to the withdrawal limits imposed, the CBE’s Tarek Amer told reporters on Sunday via Sada al-Balad TV that “Egypt is facing a cash problem.” Amer disclosed that there’s roughly 26 billion pounds being transferred out of Egypt to international banks and Egyptian travelers are also taking lots of cash with them when they travel abroad. However, local media quickly pointed out that Egyptian expat remittances were well over 26 billion pounds and were actually closer to 34 billion pounds ($2 billion+ USD). The CBE initiated a new scheme so citizens will use electronic payments more often by removing online fees and certain banking commissions. On Sunday, Egypt’s central bank told smaller banks to limit cash withdrawals to 10,000 Egyptian pounds for individuals per day and limited ATM withdrawals as well.


The monetary authority of the Arab Republic of Egypt explained on March 29 that it had told Egyptian banks to impose limits on cash withdrawals. The reason for the CBE’s move is to help curb the rising coronavirus spread in Egypt, Africa and other countries in the Middle East. The CBE’s new guideline says that the daily limit for individual withdrawals will be 10,000 Egyptian pounds ($640) and Egyptian companies can only withdraw 50,000 pounds. Further, the central bank told financial institutions to limit ATM withdrawals down to 5,000 pounds. The Egyptian pound’s inflation rate has been worse than most countries, as it was 13% in 2019 and 9.9% in 2020. Most central banks try to keep the inflation rate around 2%, but the Egyptian pound has suffered since the CBE floated the national currency in November 2016. The Egyptian central bank told financial institutions to also limit ATM withdrawals down to 5,000 pounds ($320).


Egyptians have also been told by the CBE that they should “avoid paper currency” and the citizenry should adopt electronic transfers and e-payments so they can control the covid-19 outbreak. “All banks canceled fees on transfers and e-payment methods for the citizens’ convenience,” the CBE said on Sunday. The day prior, the central bank of Egypt started an electronic payments initiative to encourage citizens to stop using physical pounds. Before that initiative, the CBE told smaller banks they could not impose late payments on certain loans and asked banks to delay credit penalties against customers and organizations. The Egyptian people have already been dealing with the high inflation rate between 9.9-13% in 2019 and 2020 due to the CBE floating the Egyptian pound in 2016. Withdrawal Limits Started in Lebanon and India Well Before the Covid-19 Outbreak


The covid-19 outbreak is not the first sign of governments worldwide limiting the use of cash within a nation. Lebanese citizens have been dealing with the economic hardship as well. The country’s central bank imposed customer withdrawal limits last October. The Reserve Bank of India (RBI) imposed strict restrictions at the end of September 2019, which caused a broad range of Indian citizens to grow angry and rush branches. The CBE’s Tarek Amer told reporters on Sunday on Sada al-Balad TV that “Egypt is facing a cash problem.”


Following the coronavirus scare, a few U.S. banks imposed withdrawal restrictions as customers from the Hamptons in New York tried to empty large accounts. Bank customers from a few other U.S. states also complained of withdrawal limit issues from financial institutions like Bank of America, Chase, and JPMorgan. Last week, reports also disclosed that a number of German banks have imposed withdrawal limits and customers can only withdraw 1,000 euros per visit.



Meanwhile, throughout the madness of this crazy environment filled with financial calamity, bitcoin supporters believe the time is now for worldwide citizens to adopt a censorship-resistant peer-to-peer electronic cash system. Banks have continued to make it harder for people to do what they want with their own money and with the covid-19 crisis, the problem is far more apparent. Americans, Egyptians, Lebanese, Indians, Germans, and citizens across the globe are starting to realize the glaring issues tied to modern central banking the hard way.


What do you think about the CBE imposing Egyptian pound withdrawal limits? Let us know in the comments below.


  Read disclaimer Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Related Stablecoin Market Caps Swell Over $7 Billion - Volumes Surpass Most Trading Pairs NEWS | 30 mins ago


While most digital assets have been suffering, stablecoins have been surging since the market downturn in mid-March and tether (USDT)… read more. IMF Declares Global Recession, 80 Countries Request Help, Trillions of Dollars Needed NEWS | 13 hours ago


The International Monetary Fund (IMF) has declared that we have entered a global recession — one that is as bad… read more. Tags in this story $26 billion, $34 billion, ATM withdrawals, ATMs, Automated Teller Machine, banks, BCH, Bitcoin, bitcoin cash, BTC, cash problem, CBE, Central Bank, Coronavirus, COVID-19, Cryptocurrency, Egypt, Egyptian Banks, Egyptian expat, egyptian pound, inflation rate, monetary authority of the Arab Republic, Peer-to-peer cash, Tarek Amer, withdrawal limits, withdrawal limits on cash


Image Credits: Shutterstock, Pixabay, Wiki Commons You can now purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Show comments Please enable JavaScript to view the comments powered by Disqus.

News Feed

Tom Blackstone2 hours agoBlast network hits $400M TVL, rebuts claim that it’s too centralizedThe Blast team responded to claims that its multisignature upgrade functionality makes it too centralized.311 Total views3 To
xSigma Passes Security Audit and Prepares to Launch Stablecoin DEX With LP Rewards
xSigma Passes Security Audit and Prepares to Launch Stablecoin DEX With LP Rewards press release PRESS RELEASE. February 24, 2021 –xSigma, a decentralized e
David Attlee12 hours agoKazakhstan officially launches digital tengeThe chairman of the National Payment Corporation has made the first transaction with the central bank digital currency.2106 Total views27 Total sharesLi
Jesse Coghlan1 hour agoAre Bitcoin ETFs good for adoption or ‘watered-down crypto’? Debate ragesAs hype builds for spot Bitcoin ETFs in the U.S., some are concerned the industry is moving away from the “core promis
A Spain Based Crypto Ponzi Scheme Abruptly Freezes Accounts of 120,000 Investors
A Spain Based Crypto Ponzi Scheme Abruptly Freezes Accounts of 120,000 InvestorsA Spain based crypto Ponzi scheme, Arbicorp abruptly froze accounts of more 120,000 investors on Sept
Is Bitcoin Bull Run Back? Daily RSI Shows Only Mild Bullish Momentum
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
This Is The Last Opportunity To Buy Dogecoin ‘Relatively Cheap,’ Predicts Analyst
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Meta drops 15% on weak outlook and high AI and metaverse spending
Jesse Coghlan29 minutes agoMeta drops 15% on weak outlook and high AI and metaverse spendingMeta shares dipped after a disappointing Q2 revenue outlook and plans to spend nearly $100 billion this year as it aims to “in
Man City and OKX release limited-edition jerseys tied to rare NFTs
Gareth Jenkinson15 hours agoMan City and OKX release limited-edition jerseys tied to rare NFTsA limited number of Manchester City’s “Unseen City Shirts” NFTs are algorithmically linked to physical, limited-edition
Ethiopian Central Bank Urges Residents to Stop Engaging in Crypto Transactions
Ethiopian Central Bank Urges Residents to Stop Engaging in Crypto Transactions The National Bank of Ethiopia (NBE) has said it does not recognize cryptocurrencies as a legitimate m
Martin Young4 hours agoRep. Tom Emmer reintroduces anti-CBDC bill to CongressThe bill would limit the Fed from issuing a CBDC, which Tom Emmer called a surveillance tool that would “undermine the American way of life.
Binance Obtains Registration as Crypto Service Provider in Cyprus
Binance Obtains Registration as Crypto Service Provider in Cyprus Cryptocurrency exchange Binance will be able to offer services for digital assets in Cyprus as the platform is now