Egypt's central bank governor has said new rules requiring importers to use letters of credit will be implemented starting in March despite complaints from business groups and traders that the measure could inflate their costs.
Central Bank Governor Tarek Amer urged businessmen to "reconcile their situations and not waste time in controversies that have no relation to the stability of Egypt's foreign trade and its sound performance," according to a statement reported by state news agency MENA.
The statement followed instructions from the central bank that were circulated by traders and reported by local media instructing banks to only accept letters of credit from importers.
Importers are currently able to use a cash-against-documents system that traders say requires less payment in advance.
A group of trade and business associations had complained in a letter to the prime minister on Monday that the new rules could exacerbate supply chain problems, damage competitiveness and delay import shipments.
Egypt has struggled to contain a rising import bill and a current account deficit that widened to $18.4 billion in the 2020/21 financial year from $11.4 billion the previous year.
