Egypt
Egypt's financial repression runs mainly through its banks and the central bank. Pound-denominated government debt carries a zero capital risk weight and counts as top-tier liquid assets. The Treasury has also relied on non-tradeable MoF notes placed privately with banks (EGP 475 billion outstanding in mid-2026, to be eliminated by mid-2027). The central bank finances the budget through an overdraft (EGP 170.9 billion at end-June 2026) and through legacy lending to public agencies, which is being run down under the IMF programme. Credit is steered by subsidised fixed-rate schemes, including a 15% priority-industry initiative paid for by the Ministry of Finance. Exit is limited by caps on carrying cash abroad, controls on card use abroad, rules routing export proceeds through local banks, daily cash-withdrawal limits and a de facto ban on crypto trading.
- 11 in force
- 0 enacted
- 0 proposed or under discussion
Measures as of
How the index is built
Each segment is what one category of rules, or the market pillar, adds to the index. The full bar is 100.
- Captive demand 3.2
- Central bank financing 6.4
- Capital controls 7.4
- Rate caps 0.0
- Prudential sovereign bias 6.0
- Directed credit 2.0
- Tax incentives 0.0
- Real asset restrictions 3.0
- Transaction taxes 1.0
- Market pillar 15.1
Index = 80% × rules (36.3) + 20% × market (75.6) = 44.1
The method in plain words
- Rules pillar (0–100). Each of the 9 categories can add up to its weight (the weights sum to 100). A category's intensity grows with every in-force measure in it: one measure counts by its severity factor (0.25 for severity 1, 0.5 for 2, 0.8 for 3), and each further measure closes part of the remaining gap, so breadth adds with diminishing returns: two severity-3 measures give 96%.
- Market pillar (0–100). The average of the market readings below: how negative the real policy rate is, and how much of the government's debt is held by its own central bank and banks.
- Index. 80% rules + 20% market when market data exists, otherwise rules alone. Laws passed but not yet applying count only in the outlook; proposals never count.
The 9 categories
Weight = the most points a category can add to the rules pillar. Intensity = how much of that weight the in-force measures fill. Open a category to see the measures counted; “What is this?” shows the instruments behind it, worldwide and in history.
- Weight 16Intensity 25%Points 3.2
Mandated holdings of government debt by pension funds, insurers or banks. What is this? →
Captive demand: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 3.2 - Weight 16Intensity 50%Points 6.4
Central bank purchases of government debt, yield curve control, direct monetary financing. What is this? →
Central bank financing: measures counted in the index Measure counted Severity Factor Points 2 of 3 0.5 6.4 - Weight 16Intensity 58%Points 7.4
Limits on moving money abroad, outbound investment limits, FX controls. What is this? →
Capital controls: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 2.5 1 of 3 0.25 2.5 1 of 3 0.25 2.5 - Rate capsWeight 14Intensity 0%Points 0.0
Caps or ceilings on deposit or lending rates, and administered interest rates. No in-force measures here. What is this? →
- Weight 10Intensity 75%Points 6.0
Prudential rules that favor sovereign debt (zero risk weights, liquidity-buffer rules, leverage-ratio exemptions). What is this? →
Prudential sovereign bias: measures counted in the index Measure counted Severity Factor Points 2 of 3 0.5 3.0 2 of 3 0.5 3.0 - Weight 10Intensity 25%Points 2.0
State-directed lending, credit guidance, and mandates to invest domestically or in state priorities. What is this? →
Directed credit: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 2.0 - Tax incentivesWeight 7Intensity 0%Points 0.0
Tax privileges for government bonds, or tax penalties on competing assets. No in-force measures here. What is this? →
- Weight 6Intensity 63%Points 3.0
Rent controls, property curbs, and limits on owning gold, cash or crypto. What is this? →
Real asset restrictions: measures counted in the index Measure counted Severity Factor Points 2 of 3 0.5 2.1 1 of 3 0.25 0.9 - Weight 5Intensity 25%Points 1.0
Financial transaction taxes, stamp duties and similar levies on non-government assets. What is this? →
Transaction taxes: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 1.0
Market pillar 75.6 / 100
The average of the readings that have data, worth 20% of the index (15.1 points here).
Real policy rate
100.0 / 100-7.0% · 2024
Policy rate minus inflation. A real rate of +2% or more scores 0; −5% or less scores 100; in between it scales in a straight line. Savers lose most when it is deeply negative.
World Bank real interest rate (lending rate minus GDP-deflator inflation), 2024, used because no policy rate and inflation pair.
Source: World Development Indicators
Debt held by the central bank and domestic banks
51.3 / 10030.8% of government debt · 2025-Q4
Share of government debt held by the domestic central bank and domestic banks. 0% scores 0; 60% or more scores 100; in between it scales in a straight line.
Central bank 12.25% + domestic banks 18.52% of general government debt, 2025-Q4.
Indicators
Measured data from international sources, alongside the rules above. Real rates below zero mean savers lose purchasing power.
Who holds government debt
Sources: IMF, IMF DataMapper: World Economic Outlook (October 2026); Fiscal Monitor (October 2026); Menzie D. Chinn and Hiro Ito, The Chinn-Ito Index (KAOPEN): a de jure measure of financial openness; IMF, Sovereign Debt Investor Base for Advanced Economies / for Emerging Markets and Developing Economies (Arslanalp and Tsuda).
Measures
Every measure tracked here, with its legal basis and sources. Only in-force measures count in the index.
In force (11)
Stamp tax on stock-exchange trades
Adds 1.0 points to the index
Law No. 153 of 2026, published on 28 July 2026 and in force the next day, levies stamp tax on sales of securities listed on the Egyptian Exchange (excluding listed investment-fund units) at 0.5 per thousand on the buyer and 0.5 per thousand on the seller, residents and non-residents alike, or 0.25 per thousand each for same-day round trips; market makers are exempt. A companion package exempts residents' capital gains on listed shares from income tax.
Why it counts: A turnover tax on equity trades raises the cost of holding and switching into shares, one of the few domestic alternatives to deposits and Treasury bills.
Legal basis Law No. 153 of 2026 amending the Stamp Tax Law (Law No. 111 of 1980), Article 1 (new Article 83 bis)
Law No. 153 of 2026 amending the Stamp Tax Law (Law No. 111 of 1980), Article 1 (new Article 83 bis)Primary source
“تفرض ضريبة على إجمالى عمليات بيع الأوراق المالية المقيدة ببورصة الأوراق المالية المصرية عدا وثائق الاستثمار المقيدة بالبورصة”
State-subsidised lending at fixed below-market rates for priority sectors
Adds 2.0 points to the index
Banks lend to designated sectors at fixed rates and are compensated for the gap to the policy rate. Since a 2022 prime-ministerial decree, new schemes are managed by the Ministry of Finance. The priority-industries initiative approved by the cabinet on 16 January 2025 offers EGP 30 billion of loans for machinery and production lines at a reduced 15% rate for up to five years, with the ministry paying the difference to the CBE lending rate plus 1%. In January 2026 the cabinet raised the per-client cap from EGP 75 million to EGP 100 million. Legacy CBE schemes (middle-income mortgages, industry/agriculture/construction, tourism) still had EGP 96.9 billion of loans outstanding at end-June 2026.
Why it counts: Fixed-rate quotas channel bank credit to state priorities at administered prices instead of to the highest-return borrowers, with the interest subsidy borne by the budget or the central bank.
Legal basis Central Bank of Egypt circular of 23 February 2025 on the initiative to finance priority industrial sectors, Items 1, 5 and 1 more
Central Bank of Egypt circular of 23 February 2025 on the initiative to finance priority industrial sectors, Items 1, 5Primary source
“الشركات المستفيدة من المبادرة سعر عائد مخفض يبلغ ،%15 على أن تتحمل وزارة المالية الفرق في سعر”
Central Bank of Egypt circular of 18 February 2026 amending the priority industrial sectors initiative, Item 2Primary source
“ليكون الحد األقصى لتمويل العميل الواحد في إطار المبادرة مبلغ 100 مليون جنيه بدال من 75 مليون جنيه”
Daily caps on cash withdrawals from banks
Adds 0.9 points to the index
The central bank caps daily cash withdrawals at EGP 250,000 from bank branches for individuals and companies and EGP 30,000 from ATMs (limits set in April 2024, building on a 25 August 2022 circular). A temporary rise of the branch limit to EGP 500,000 in July 2025 was cancelled a week later. Banks must also set their own limits for foreign-currency cash withdrawals.
Why it counts: Limits on taking deposits out as cash keep savings inside the banking system, where they fund government borrowing, and make it harder to switch into cash, dollars or gold quickly.
Legal basis Central Bank of Egypt circular of 15 April 2024 on cash withdrawal limits and 1 more
Central Bank of Egypt circular of 15 April 2024 on cash withdrawal limitsPrimary source
“ليصبح 250 ألف جنيه مصري لألفراد والشركات، ومن ماكينات الصراف اآللي ليصبح 30 ألف جنيه مصري”
Central Bank of Egypt circular of 15 July 2025 ending the temporary increase in the maximum cash withdrawal limitPrimary source
“يكون الحد األقصى اليومي لعمليات السحب النقدي من فروع البنوك 250 ألف جنيه مصري”
Controls on using bank cards and travel foreign currency abroad
Adds 2.5 points to the index
Since December 2022 the central bank has barred customers from obtaining foreign currency for travel without leaving the country and told banks to report suspected card misuse abroad. Circulars of October 2023 and February 2024 require card use abroad to be opened per customer, with banks stopping the card and reporting to the I-Score credit bureau if the customer cannot prove they were abroad; an August 2025 circular dropped the routine 90-day proof requirement for customers who notify their bank before travelling, but kept the sanctions where proof is requested and not provided.
Why it counts: Policing card spending abroad stops residents using pound-funded cards to buy foreign currency or foreign assets at the official rate.
Legal basis Central Bank of Egypt circular of 22 December 2022 regulating the use of credit cards, debit cards and FX for travel
Central Bank of Egypt circular of 22 December 2022 regulating the use of credit cards, debit cards and FX for travelPrimary source
“يُحظر طلب تدبير العملة ألغراض السفر للخارج دون مغادرة البالد”
Privately placed Ministry of Finance notes with (mainly public) banks
Adds 3.2 points to the index
Alongside public auctions, the Ministry of Finance has raised money through non-tradeable MoF notes placed privately with banks (including one-week notes); IMF data show private placements from December 2022. The outstanding stock fell from EGP 752 billion to EGP 475 billion over the year to June 2026, and public banks' share of MoF notes fell to 32% from 51% in March 2026. The authorities committed to cut the stock to EGP 375 billion by end-September 2026 and to zero by end-FY2026/27, and to stop issuing one-week notes by end-September 2026.
Why it counts: Non-tradeable notes placed directly with selected, largely public banks give the Treasury short-term funding that never has to clear in an open auction, tying those banks' deposits to Treasury financing.
Legal basis Egypt: Memorandum of Economic and Financial Policies (Letter of Intent, seventh EFF review), MEFP (Attachment I to the Letter of Intent of July 17, 2026), 'Private placements' paragraph
Egypt: Memorandum of Economic and Financial Policies (Letter of Intent, seventh EFF review), MEFP (Attachment I to the Letter of Intent of July 17, 2026), 'Private placements' paragraphPrimary source
“The outstanding stock of privately placed MoF notes has been reduced from EGP 752 billion to 475 billion over the last twelve months”
Central bank overdraft to the Treasury and lending to public agencies
Adds 6.4 points to the index
Article 47 of the 2020 central bank law lets the central bank lend to the government, on request, to cover seasonal budget deficits, up to 10% of average general-budget revenues of the previous three years, for renewable three-month terms repayable within twelve months. Under the IMF programme the overdraft is capped by a weekly ceiling; it stood at EGP 170.9 billion at end-June 2026. Separately, the central bank's lending to public agencies other than the Ministry of Finance (capped at its January 2024 stock of EGP 661.172 billion) is being repaid, with the authorities committed to reducing it by EGP 100 billion a year to zero by end-June 2029.
Why it counts: Direct central-bank credit finances the budget and public bodies outside market discipline, adding to money growth and inflation that erode the real value of pound savings.
Legal basis Law No. 194 of 2020 promulgating the Law of the Central Bank and the Banking Sector, Article 47 and 1 more
Law No. 194 of 2020 promulgating the Law of the Central Bank and the Banking Sector, Article 47Primary source
“يقدم البنك المركزى تمويلاً للحكومة بناءً على طلبها لتغطية العجز الموسمى فى الموازنة العامة ، على ألا تجاوز قيمة هذا التمويل ( ١٠٪ ) من متوسط إيرادات الموازنة العامة فى السنوات الثلاثة السابقة”
Egypt: Memorandum of Economic and Financial Policies (Letter of Intent, seventh EFF review), MEFP (Attachment I to the Letter of Intent of July 17, 2026), paragraph on CBE lending to public agenciesPrimary source
“We remain committed to reducing such lending by EGP 100 billion annually to zero by end-June 2029”
Ban on issuing, trading or promoting crypto-assets without a central bank licence
Adds 2.1 points to the index
Article 206 of the 2020 central bank law prohibits issuing, trading or promoting cryptocurrencies or electronic money, and creating or operating platforms to trade them, without a licence from the central bank's board. The central bank has repeatedly warned that no licence has ever been granted, so crypto trading in Egypt has no lawful domestic channel.
Why it counts: Closing off crypto as a legal store of value or route out of the pound keeps savings in domestic bank deposits and government-linked assets.
Legal basis Law No. 194 of 2020 promulgating the Law of the Central Bank and the Banking Sector, Article 206 and 1 more
Law No. 194 of 2020 promulgating the Law of the Central Bank and the Banking Sector, Article 206Primary source
“يحظر إصدار العملات المشفرة أو النقود الإلكترونية أو الاتجار فيها أو الترويج لها أو إنشاء أو تشغيل منصات لتداولها أو تنفيذ الأنشطة المتعلقة بها بدون الحصول على ترخيص من مجلس الإدارة”
Central Bank of Egypt: The Fourth (4th) Warning Statement on CryptocurrenciesPrimary source
“the Central Bank of Egypt emphasizes that no license has ever been issued or granted to engage in such trading activities in the Egyptian market”
Limits on carrying foreign and Egyptian banknotes out of the country
Adds 2.5 points to the index
Travellers may take out up to USD 10,000 (or equivalent) in foreign currency, plus any larger amount they declared on arrival; Egyptian banknotes may be carried in or out only within an amount set by the central bank's board, and sending Egyptian or foreign currency by post is banned. The same law guarantees residents the right to hold foreign currency and to transfer it through banks.
Why it counts: Caps on physical cash exports block the simplest way of moving savings abroad outside the banking system, where transfers can be monitored and rationed.
Legal basis Law No. 194 of 2020 promulgating the Law of the Central Bank and the Banking Sector, Article 213
Law No. 194 of 2020 promulgating the Law of the Central Bank and the Banking Sector, Article 213Primary source
“وإخراج النقد الأجنبى من البلاد مكفول لجميع المسافرين بشرط ألا يزيد على عشرة آلاف دولار أمريكى أو ما يعادلها بالعملات الأجنبية الأخرى”
Pound-denominated government debt counts as top-tier liquid assets in the LCR
Adds 3.0 points to the index
The central bank's liquidity rules, binding from end-July 2016, require banks to meet a liquidity coverage ratio (phased up to 100% by 2019) separately in local and foreign currency. Tradable Treasury bills and other debt issued by the Egyptian government or the central bank in local currency count as Level 1 high-quality liquid assets at 100% of value.
Why it counts: Local-currency government paper counts in full toward the pound liquidity ratio, which banks must meet separately from foreign currency. This gives banks a standing regulatory reason to hold Treasury bills whatever their yield relative to inflation.
Legal basis Central Bank of Egypt circular of 20 July 2016: supervisory instructions on liquidity risk management, Section on Level 1 assets, item 1/1/1/5
Central Bank of Egypt circular of 20 July 2016: supervisory instructions on liquidity risk management, Section on Level 1 assets, item 1/1/1/5Primary source
“مصدرة من الحكومة المصرية أو البنك المركزى المصرى بالعملة المحلية”
Export proceeds for listed goods must be channelled through Egyptian banks
Adds 2.5 points to the index
Under a 2013 trade-minister decree (No. 235 of 2013, on tightening control over the proceeds of certain exports) and central bank rules of 28 April 2013, exports of listed goods must be executed through a bank operating in Egypt and proved to customs by a bank certificate, so the foreign-currency proceeds come back through the domestic banking system. Investment and Foreign Trade Minister's Decree No. 273 of 2025 added 65 more goods to the list (CBE circular of 25 June 2025).
Why it counts: Forcing export earnings through domestic banks keeps foreign currency onshore and under central-bank oversight instead of being held abroad by exporters.
Legal basis Central Bank of Egypt circular of 25 June 2025 (Minister of Investment and Foreign Trade Decree No. 273 of 2025)
Central Bank of Egypt circular of 25 June 2025 (Minister of Investment and Foreign Trade Decree No. 273 of 2025)Primary source
“بإضافة عدد 65 سلعة إلى السلع التي يشترط تنفيذ العمليات التصديرية الخاصة بها عن طريق أحد البنوك العاملة في”
Zero capital risk weight for pound-denominated claims on the Egyptian government
Adds 3.0 points to the index
Under the central bank's Basel II capital rules, banks may assign a 0% risk weight to claims in Egyptian pounds on the Egyptian government (Treasury, government administration, local government and service authorities) and on the central bank, and to government and central-bank debt instruments issued in local currency. Foreign-currency government debt is weighted by rating.
Why it counts: Banks need no capital against local-currency sovereign holdings, which makes Treasury bills and bonds cheaper to hold than private loans and supports banks' large appetite for government paper.
Legal basis Central Bank of Egypt circular of 24 December 2012: regulations for minimum capital adequacy (Basel II), Credit risk, claims on sovereigns (item b)
Central Bank of Egypt circular of 24 December 2012: regulations for minimum capital adequacy (Basel II), Credit risk, claims on sovereigns (item b)Primary source
“يُسمح للبنوك إعطاء وزن مخاطر صفر % للبنود التالية : • المطالبات بالجنيه المصري على الحكومة المصرية”
Repealed (1)
Mandatory 25% of bank lending to small and medium firms (expired end-2024; no extension published)
Not counted in the index
A central bank circular of 22 February 2021 required each bank to raise lending to micro, small and medium enterprises from 20% to 25% of its credit portfolio (as of December 2020), with 10% for small firms. The requirement was extended to 31 December 2023 and, by board decision of 16 January 2024, to 31 December 2024. No later extension appears among the central bank's published circulars, so the rule is treated as expired by its own terms.
Why it counts: A quota fixes a share of bank credit for sectors chosen by the state, regardless of the risk-adjusted return, and reduces credit available to other borrowers.
Legal basis Central Bank of Egypt circular of 18 January 2024 extending the targeted MSME percentages, Item 1
Central Bank of Egypt circular of 18 January 2024 extending the targeted MSME percentages, Item 1Primary source
“بشأن إلزام البنوك بتحقيق نسبة %25 من محفظة التسهيالت االئتمانية للبنك”
Before today
The toolkit has no examples from Egypt yet.