Egypt raises foreign currency deposit cap for exporters
The new rules require firms to earn within three months foreign revenues through their exports equivalent to the sum they deposit to finance imports of components.
Egypt has been struggling to restore its economic growth since an uprising in 2011, which hindered tourism income and foreign investment, two major sources of foreign currency for the import-dependent country in order to finance its purchases of everything from wheat to cars.
Last month, the central bank raised the cap on foreign currency deposits by fivefold to $250,000 for essential food, medicine and raw materials, relieving some pressure. However, manufacturers, including General Motors, continued to feel the pinch and have had to pause or slow their production.
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