Import restrictions on non-essential goods could be on their way out: The Central Bank of Egypt has signaled that it could ease import restrictions on all non-essential goods after requesting banks to list import requests, Asharq Business reports, citing eight anonymous bankers. The CBE on Sunday reportedly asked local banks for data on requests submitted for letters of credit (LCs) for 13 non-essential commodities, a move that bankers have interpreted as an indicator that it will soon end restrictions that currently require the central bank to approve any LCs to fund the import of these goods.

But why now? Bankers believe the CBE’s move was prompted by the country’s growing supply of foreign currency. The uptick in FX liquidity following the USD 35 bn Ras El Hekma agreement and float of the EGP just following it in March has led to “an increase in the flows of foreign exchange resources in Egypt sufficient to finance import operations without restrictions, and without this process causing a financing gap,” EGBank board member Mohamed Abdel Aal told the outlet.

Remember: The central bank in March 2022 prohibited banks from issuing credit lines for a list of 13 commodities unless the importer had secured the central bank’s approval. The commodities include fully assembled cars, mobile phones, food plants and seeds, fresh fruits, cocoa, jewelry, electric appliances, ready-made garments, furniture, and heavy equipment.

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