The Foreign Exchange Law and its Executive Regulations regulate foreign exchange operations in Egypt. The Executive Regulations list entities authorized to deal in foreign currency. These include almost all banks licensed to operate in Egypt. Under the Executive Regulations banks are permitted to buy foreign currency for their own account and on behalf of third parties. Banks are the only entities allowed to transfer currency abroad.

The Foreign Exchange Law permits the establishment of authorized foreign exchange dealers. Foreign exchange dealers are authorized under the Foreign Exchange Law to buy and sell foreign currency for their own account and under their own responsibility. However, foreign exchange dealers are not authorized to transfer foreign currency abroad.

Individuals or entities may deal in foreign currency but only through licensed banks or foreign exchange dealers.

Maintaining Foreign Currency

Both natural persons and legal entities are free to maintain any amount of foreign currency. Foreign currency accounts may be held with any approved bank in Egypt and may be maintained abroad at the owner's discretion. Funds kept in foreign currency accounts may be used in Egypt or remitted overseas.

Buying Foreign Currency

The purchase of unlimited amounts of foreign currency from any of the authorized banks or dealers is permitted. Banks and dealers are allowed to sell foreign currency either in cash or by means of wire transfers to individuals or to private or public sector companies. Furthermore, banks and dealers are authorized to sell foreign currency to allow for repatriation of dividends earned on Egyptian stocks and interest from Egyptian bonds.

The Executive Regulations of the Foreign Exchange Law introduced the concept of forward exchange transactions whereby the purchase or sale of foreign currency at an exchange rate established at the time of agreement can be effected, with payment and delivery at a specified future date.

Free Foreign Exchange Market

A single market for foreign exchange transactions, called the Free Foreign Exchange Market, was established by Ministerial Decree. Exchange rates for transactions effected on the Free Foreign Exchange Market are determined by the Central Bank of Egypt (CBE), other approved banks and dealers in accordance with the free market mechanism.