Letter of credit Egypt

As per the latest regulations from the CBE (Central Bank of Egypt), all importers are now obliged to import via Letter of credit issued from the importing bank in Egypt to the exporting bank outside Egypt. Food and medical imports are exempt to ensure smooth delivery of essential supplies, also few exemptions have been given to Egyptian factories and some foreign entities (with certain limits). This decision is expected to lower the import bill, however it is expected to cause higher inflation and scarcity of goods.