Emerging Markets Rates and Currencies Handbook

This is an EGP FX fixing rate published independently by the Central Bank of Egypt on Reuters three times a day, and the final Fix is published at 2 pm Cairo Local time. Regulation Offshore Restrictions: EGP is non-transferrable currency and cannot be traded offshore. Non-Resident Restrictions: Foreign Non-resident entities are not allowed to open accounts in local currency unless, they have an underlying project operating in Egypt that generates local currency that they will use for the project. License Requirements Derivatives contracts/agreements should be signed by the designated personnel having the authority to deal in these products as per the commercial register. Requirements to open a foreign currency account Legal documentation, account opening documentation, and instruction specifying the currency sub account required. Deal Management Rollover: Permitted subject to product and risk approval, in addition to regulatory approval (if required). Unwinding: Permitted subject to product and risk approval. Early Maturity: Permitted subject to product and risk approval. Documentation Requirements Dividends • Dividends can be repatriated provided the required documentation is submitted (financial statements and minutes of the general assembly meeting approving distribution of dividends and mentioning the dividend to be executed in FCY). • Dividend transactions are subject to liquidity and regulatory pre-notification. • Clients may opt. to open a custody account with banks for the purpose of Dividends distribution by MCDR according to law. • Dividends should be paid from clients’ good funds. i.e. Credit facility cannot be used to pay dividends Cash Centralization • All cross border payments should be supported by documents. A cash centralization agreement between the Parent and the subsidiary. • Similar transactions are subject to liquidity availability and regulatory pre-approvals as applicable. Loan Repayment • Loan Repayment: Banks have to make sure that loan proceeds have been received by the company locally and reflected on their financials. • The Loan FCY amount should be given up to the bank • For payment of principle amount the required documentation will be loan agreement between the two parties, and for interest payment, the loan agreement will be required in addition to the interest invoices with the amount that is required to be paid. • Loan Repayment transactions are subject to liquidity and approval from regulator on case-by-case basis. Trade Flows Trade related documents for form 4, Letter of Credit, IDCs such as invoices, bill of lading, payment instructions. Capital Flow and FDI No restriction on capital inflows. However, the certificate to GAFI should be made in the same currency as the capital. i.e. in most of the cases, the foreign currency has to be converted into EGP. Additional Comments * The Foreign Exchange Market and the regulations governing the market in Egypt are dynamic, please refer to the team for any inquiries or for market update. ** Official market hours from 10.00 AM to 2:00 PM CLT. *** Foreign exchange transactions are subject to availability of foreign currency and providing the required documentation requested by any bank. Markets Address: 5/7 Star Capital Tower Gezeret el Arab Mohandessein Giza Egypt FX Sales Contact: +202 2322 6722 / +202 23226771