A banking expert reveals the secret of the banks' sudden messages and the central bank's decision

“Dear customer, please note that transactions in foreign currencies will be stopped when using direct debit cards issued on your accounts in Egyptian pounds, and the use of the direct debit card will be limited to transactions in Egyptian pounds within the Arab Republic of Egypt only. Terms and conditions apply".

Direct debit cards

Millions of Egyptians received this message, on the morning of October 10, in a state of dissatisfaction and confusion at the same time, given that the decision attempts to solve one problem with another. Since the end of last week, customers have been receiving similar messages, each according to the bank it belongs to.

Banking expert Karim Yahya explained that the banks’ decision to stop using direct debit cards issued in Egyptian pounds abroad comes to reduce the daily bleeding of withdrawals and purchases in dollars, which increases the pressure on each bank’s foreign reserves.

Central Bank’s decision

Tariq Helmy, a banking expert, revealed the secret of the Central Bank’s decision and the messages that reached citizens from the banks they deal with regarding stopping the use of direct debit cards abroad.

He said during a phone call on the “DMC Masaa” program, presented by journalist Osama Kamal, broadcast on the “DMC” channel, that direct debit cards are used to withdraw cash or purchases inside or outside Egypt, but in the current circumstances and the dollar crisis, some people have taken advantage of this. Illicit facilities, which caused the Central Bank’s decision.

Major economic crisis

The banking expert continued that a person was caught at the airport carrying a large number of direct debit cards, explaining that the Central Bank was forced to take this decision to confront these actions, which are considered a national crime, especially since they are considered illegal profits in a time of crisis.

Tariq Helmy continued that companies affected by the Central Bank’s decision still have another solution to conduct their business, which is to use credit cards while bearing the larger commission difference on these cards compared to direct debit cards, which limit $1,000 per person per month.

The banking expert continued that Egypt is going through a major economic crisis and the citizen must bear the circumstances and search for other alternatives, concluding that he hopes this moratorium will be for a temporary period between 6 months to a year.