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Thursday, 9 June 2016

Cabinet agrees to impose prison sentences, heavy fines on black market traders during Wednesday meeting

The Ismail cabinet approved yesterday prison sentences for traders selling foreign currency at anything other than the official exchange rate, escalating the Central Bank of Egypt’s crackdown on the black market, Reuters reported. According to a statement issued after its regularly scheduled Wednesday meeting, cabinet passed draft amendments to a law regulating the foreign exchange market, including the imposition of prison sentences for those breaking the foreign exchange law, with jail terms of six months to three years and fines of EGP 1-5 mn. The amendments also give CBE Governor Tarek Amer the authority to suspend exchange bureau licenses for a year and the power to levy a similar fine, with repeat offenders facing the permanent revocation of their licenses. The cabinet also introduced a three-to-ten-year prison sentence for anyone caught dealing in FX who isn’t part of a licensed financial institution. More on the cabinet meeting at the end of Speed Round.

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