Egypt’s central bank issued instructions to banks on Sunday to tighten control over the supply of gold export earnings, and said it was “given the nature of its commercial movement,” according to a periodic letter addressed to banks published on the bank’s website.
The Central Bank has given a mandate to the banks, in the event that the proceeds from the gold export operations do not arrive within a maximum period of 7 working days from the date of shipment, and after the bank has unsuccessfully contacted the customer in this regard , within a maximum of 3 subsequent working days, to communicate to the Central Bank the name of the customer and his group, or the individual customer and the parties related to it.
Therefore, the Central Bank changed the deadline given to bank customers to provide the proceeds of gold export operations to the bank that initiated the export process from 180 days, as indicated by letter dated April 28, 2013, to 7 days now , in addition to the 3 days in which the banks will follow up with the customer subsequently in the event of non-compliance with the supply.
And according to what can be read in the letter from the Central Bank on Sunday, after notifying the banks of the customer’s name, the Central Bank will in turn notify the banks of the banking system to include the customer in the lists of defaulting customers, in order not to in the future similar operations for the customer and for the group.
The bank must also inform the Ministry of Commerce and Industry (Foreign Trade Sector), the Customs Agency, as well as the Stamps and Scales Authority so that they can adopt the necessary measures on their part.
The Central Bank has called on banks to take the necessary measures to implement the decision.
(Prepared by: the editorial team, contact zawya.arabic@lseg.com)
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