PSA- Foreign nationals are going to need FX to get residence permits: Foreign nationals applying for a residence permit after arriving in Egypt will soon be required to transfer the required fees from hard currency into EGP through a local bank or exchange office, according to a cabinet decision published in the Official Gazette on Tuesday. The regulations are set to take effect by 13 September.

There are no changes to the system for tourists coming here for short visits: The new regulations do not apply to folks who are arriving in Egypt as tourists and who obtain visas on arrival, apply for visas online, or obtain them through embassies or consulates abroad. The new requirement is for folks who want to stay in Egypt beyond the original period of their visa.

Visitors looking to extend their stays should apply for a residence permit (or “iqama”) while their tourist or other visa is still valid. Residence permits may be for tourism, work, study, to stay with an Egyptian spouse, or for other purposes. Only applicants for this residency permit need to prove they have transferred the fees in FX to an Egyptian bank or exchange office, including any late fees. Information about the requirements for acquiring a residency permit can be found here.

There’s a hefty fine for those who overstay: Visitors residing in the country without a valid residence permit have three months from 13 September to rectify their status — and must deposit an administrative fee equivalent to USD 1k in a designated bank account.

Are you a foreign resident with no FX-denominated source of income? We’re hearing that this rule may not apply to those who already have residency status, are looking to renew it, and don’t have a source of foreign currency income — though there’s nothing to suggest this in the text of the decision. We’ll let you know once we’re clear on the details.

The latest in a long line of FX-raising initiatives beyond the state asset sale program : The government is working overtime to pull more hard currency into the banking system amid an ongoing shortage that has caused the EGP to halve in value against the USD, triggered a resurgent parallel market, and driven inflation to record highs. Recent government initiatives to drum up FX include allowing expats to import cars in return for depositing fees in FX, and settle any outstanding military service for the sum of USD / EUR 5k. Foreign investors can also buy land in FX, while a separate program offers investors generous tax breaks if they use hard currency to fund at least half of the investment cost of industrial projects.

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