Egypt Tightens Grip on Export Revenues with New Currency Rules

Egypt’s government is cracking down on foreign exchange leaks from export operations, expanding the list of goods that require full upfront payment in foreign currency before shipping. The move is seen as a push to shore up the country’s fragile reserves and inject hard currency back into the banking system.

The Ministry of Trade and Industry’s new directive—Ministerial Decree No. 273 of 2025—wasn’t exactly unexpected, but it’s sending fresh ripples through Egypt’s exporter circles. Published in the official gazette earlier this year and now being rolled out at customs checkpoints, the new rule demands exporters prove receipt of payment in convertible foreign currency—before the goods even leave the country.

What the Decree Really Means for Exporters

Let’s break it down: the policy isn’t new in spirit. Egypt has long required proof of payment for many export categories, especially from businesses hoping to claim government-backed export subsidies.

But this decree takes it a few steps further.

Now, a significantly expanded list of export goods—including items that previously had more flexible terms—must be prepaid through secure methods. We’re talking about:

• Full-value documentary credit

• Pre-shipment bank transfers

• Official financial instruments cleared through Egyptian banks

And there’s no room for ambiguity. Before clearing customs, exporters must submit a bank certificate confirming that funds have landed.

Ahmed Zaki, who heads the Exporters Division, didn’t mince words: “The goal is simple. To make sure export earnings contribute directly to Egypt’s economy instead of disappearing into some offshore account.”

Exporters Worry About Red Tape, Not Just Compliance

Some exporters, especially small and medium-sized outfits, are raising eyebrows. There’s a growing sense that while the policy may help plug financial leaks, it also risks slowing down trade at a time when Egypt can hardly afford it.

One export consultant in Cairo, who asked not to be named, said the concern is real. “Many exporters are operating on tight cash flows. Requiring full foreign currency payment before shipment can mean missed deals, especially with buyers in emerging markets who aren’t used to these terms.”

Still, others see this as Egypt finally enforcing the kind of export discipline that countries like China or India have been practicing for years.

There’s also a strong undercurrent of frustration with so-called phantom exporters. These are companies that report shipments to access subsidies or rebates—without actually bringing in any money. For them, this decree could be a death knell.

Banks Step Into a Bigger Role

The expanded regulation also gives Egyptian banks a more central role in the export cycle.

Zaki emphasized that the policy isn’t meant to “strangle trade.” Instead, it’s designed to “reinforce integrity” in the sector. But to do that, banks need to verify and document every transaction. That means more bureaucracy, more paperwork, and more potential delays.

Here’s what banks must now confirm before customs clearance:

• The exporter received full payment

• The payment was made in convertible foreign currency

• The funds were deposited in a verified Egyptian bank account

Some exporters are worried that increased bank scrutiny might add lag time to an already sluggish clearance process.

Egypt’s Currency Troubles Keep Driving Policy

Zooming out, this decree is part of something bigger. Egypt’s economy has been dealing with severe foreign currency shortages, even after multiple currency devaluations in the past two years. Foreign reserves are under pressure, external debt repayments are looming, and the gap between the official and black market rates has widened.

By tightening control over export revenues, the government is hoping to shore up the formal banking system’s access to dollars, euros, and other hard currencies.

A quick snapshot of Egypt’s foreign exchange situation:

That widening black market gap is no coincidence. Traders and businesses trying to bypass formal banking channels have helped fuel demand outside the system. This decree is clearly aimed at forcing more transactions back into the banking fold.

Exporters Caught Between Policy Goals and Market Realities

This kind of regulation always walks a tightrope. On the one hand, it aims to protect the economy. On the other, it can crimp the very businesses that are trying to earn hard currency.

Exporters of perishable goods like citrus, fish, and herbs are especially vulnerable. Some buyers just aren’t comfortable prepaying for goods they haven’t seen.

And let’s face it—competition in regional markets is fierce. If Egypt’s rules are too rigid, some foreign buyers might take their orders elsewhere.

Still, some business voices have stepped up to defend the move.

“It’s about time Egypt protected its dollar inflows more aggressively,” said Sherif Abdel Hamid, a logistics consultant in Alexandria. “No one’s stopping you from exporting. But at least prove the money’s real.”

Not Just a Local Fix—This Is Part of a Bigger Reform Puzzle

Egypt’s policymakers have been juggling a lot lately—subsidy reform, debt restructuring, IMF loan tranches, privatization drives. The foreign currency squeeze has made it harder to manage any of that.

This decree, though relatively narrow in scope, feeds into a wider strategy: build transparency, formalize financial channels, and avoid getting cornered again by a dollar crunch.

It also lines up with what international lenders are asking for—better documentation, fewer gray zones, and more traceability in financial transactions.

This is not some paperwork stunt. It’s one tile in a mosaic of reforms meant to keep Egypt’s economy afloat.