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The Chamber of Communications and Information Technology Industry (CIT) has requested an urgent meeting with the Governor of the Central Bank of Egypt (CBE) to discuss and clarify the negative impacts of the decision to stop foreign currency transactions for direct debit cards on information and communications technology (ICT) companies and the Egyptian economy.ICT companies say such a measure would lead to the relocation of ICT service companies from Egypt
Khaled Ibrahim, the Chairperson of the CIT Chamber, said that the decision would affect the competitiveness and growth of Egyptian ICT companies. ICT companies rely on foreign currency transactions to pay for their services and products. The decision would also encourage many Egyptian companies to relocate their business centers and headquarters to neighboring countries that offer facilities and incentives to attract ICT investments and create a strong ICT industry in their countries, undermining the Egyptian ICT industry and affecting Egypt’s ranking in various international indicators related to business and ICT.
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Meanwhile, mobile phone operators have informed their customers via text message that foreign currency transactions have been suspended through electronic payment wallets. The companies said that the online payment card can only be used for local transactions in Egyptian pounds. This comes after several banks announced that they have stopped foreign currency transactions at home and abroad through direct debit cards, and limited payment through them to local currencies only, in compliance with the CBE’s decision.
