Several banks in Egypt have decided to stop the use of newly issued credit cards abroad for up to six months from the date of issuance, while other banks opted for up to three months instead.
A banking source said that the decision applies to cards issued as of December 20, 2023.
According to the source, this change is due to a noticeable increase in customer demand for issuing new credit cards, and the significant growth in the use of these cards abroad by some banks.
The source added that the Central Bank of Egypt (CBE) recommended banks, in verbal instructions last week, to confront any abnormal usage leading to demand for foreign currency in unjustified ways.
He noted that the CBE allows for flexibility in dealing with these cases, so decisions regarding the usage of new cards abroad vary according to each bank.
Banks that suspend the use of new credit cards for a period of six months from the date of issuance, including the National Bank of Egypt, Banque Misr and International Commercial Bank, will notify customers with the decision – with reactivation allowed after this period according to limits available at the time.
Banking expert Tarek Metwally said that stopping international transactions applies to newly issued cards only, as the limits of international transactions remain the same depending on the type of each card.
Metwally explained that successive bank decisions came with the aim of confronting the misuse of credit cards and the excessive use of credit cards by some people after the dollar crisis.
And banking expert Mohamed Abdel-al said that the decision aims to fill any gaps that lead to the unjustified consumption of dollar tranches.
