The Letters of Credit (L/C or documentary credits) system will be canceled within the coming two months, Prime Minister Mostafa Madbouly announced during his closing speech at the Egyptian Economic Conference.

Work on the Letters of Credit procedures is underway in coordination with the Central Bank of Egypt, the PM explained.

The L/C policy, which required importers to issue letters of credit to access foreign currency, was implemented after Egypt saw around $25 billion in outflows exit the country in under one month.

Regarding the movement of the USD, Madbouly stated that the state had no choice but to restrict the movement of the dollar from Egypt after this loss.

Egypt is going through a real crisis, and there was no other option than to limit or restrict the USD’s movement through various methods in order to maintain the stability of the state and to deliver resources needs to provide basic needs such as foodstuffs, food, fuel, and etc., said the PM.

The state is currently working to quickly reduce the gap to provide production requirements, he added.

Earlier today, Madbouly revealed the government is preparing a new strategy to develop the industrial sector.