Documentary Letters of Credit Become Mandatory

 

The Central Bank of Egypt has instructed Egyptian banks to accept only Letters of Credit for the purchase of imports, as documentary collections will be withdrawn next month.

Industry groups in Egypt are lobbying the government to reverse the change which does not apply to all sectors, or to goods with a value of less than $5000. Branches of foreign companies and their subsidiaries are exempt, and banks are allowed to accept invoices for goods shipped before the change was announced on 13 February 2022.

Exclusions

  • Medicines
  • Serums
  • Certain chemical substances
  • Tea
  • Meat
  • Chicken
  • Fish
  • Wheat
  • Table oil
  • Baby formula
  • Powdered milk
  • Beans
  • Butter
  • Maize

Learn about our Letter of Credit service here

Get trained in Letters of Credit.