An influx of counterfeit coins was behind the CBE’s decision to print EGP 1, EGP 0.5, and EGP 0.25 banknotes, a Central Bank of Egypt official tells Al Borsa. Counterfeiters had been manufacturing coins in China and smuggling them into Egypt, said the sources. The CBE was forced to issue EGP 500 mn in banknotes to protect liquidity in the market after the bank recalled the coins to investigate. One Egyptian was detained for producing EGP 2 bn of the coins in China and smuggling them to Egypt, the source said. CBE Governor Tarek Amer had stated the move was to combat “change hoarders,” while some observers had suggested the coins were simply too expensive to produce. The CBE has begun distributing the new banknotes to the National Bank of Egypt, Banque Misr and Banque du Caire, Al Masry Al Youm reports.