The banking system has pulled in USD 1.4 bn in one week following the float of the EGP, 15 times what it was raking in before the liberalization of the currency, said CBE Governor Tarek Amer, according to Al Mal. Amer noted that all of the USD 1.4 bn has been dispersed to cover import backlogs and the issuance of letters of credit, denying reports that banks have not been channeling these funds back into the economy. As we noted last week, importers have taken to the press to complain about not being able to access USD from banks, with reports emerging that some in the auto industry continue to rely on the parallel market. Amer is set to meet with banking heads today to talk FX strategy.

How popular were the NBE’s 20%- and 16%-interest CDs? National Bank of Egypt (NBE) attracted some EGP 30 bn in deposits with its new high-yield certificates of deposit, Yehia Aboul Fotouh, NBE’s deputy chairman, told Ahram Gate. NBE also said it extended USD 65 mn to importers on Wednesday and increased that amount to USD 70 mn on Thursday. This was probably helped by the Egyptian Foreign Exchange Company announcing it sold USD 2.5 mn to NBE at a rate of EGP 16.90 per USD 1. Al Masry Al Youm described the transaction as the largest of its kind since 2011.

In another sign that the baking system is beginning to replenish supply of FX, banks have apparently begun loosening up their caps on USD withdrawals abroad, with new cash withdrawals ranging from USD 250 to up to USD 3,000. Among them was HSBC which has raised purchasing limits on all of its cards outside Egypt, while maintaining a USD 300 monthly limit, Al Mal reported. Purchasing limits were increased to EGP 5k for standard debit cards, EGP 10k for Advance cards, and EGP 15k for Premier cards. Meanwhile, purchasing limits were raised to EGP 5k for standard credit cards, EGP 12k for MasterCard Advance and Visa Platinum cards, and EGP 25k for Premier cards. The newspaper has also published a chart tracking the new caps.