Egypt’s bourse on Tuesday officially eliminated restrictions on GDR deals, in a sign that the FX crunch that hit the most populous Arab country has been solved, according to a press release issued by the Egypt Exchange.
The bourse said that its board of directors decided to remove restrictions that force the proceeds of global depository receipt sales to be converted to EGP before being distributed to beneficiaries.
The regulations were put in place back in 2012 and tightened in 2015 at the height of the FX crunch.
The bourse said in 2015 returns could only be taken in the local currency, a move that appeared aimed at eliminating an avenue for acquiring dollars amid a shortage of foreign currency.
Also last month, Egypt’s central bank removed limits on international currency transfers, scrapping a $100,000 monthly cap on individual bank transactions in a long-awaited reform intended to lure back needed foreign investment.
As part of a three-year, $12 billion International Monetary Fund lending programme that began late last year, Egypt is obliged to end these controls.
Egypt’s central bank floated the pound in November 2016 to unlock foreign currency inflows and crush a black market for dollars that had discouraged people from channeling foreign currency through the banking system.