The central banks of Egypt and the United Arab Emirates are coordinating over Banque Misr after the US Treasury moved to cut the Egyptian bank’s UAE branches from the US financial system over alleged dealings with Iran.
In a joint statement on Sunday, the two central banks said they were working together on the matter and that Banque Misr would take the necessary steps to ensure its operations continued without disruption.
The US action targets Banque Misr’s six UAE branches, rather than the bank’s operations in Egypt. Egypt’s central bank has also clarified that the restrictions do not apply to Banque Misr’s headquarters in Cairo or its other international operations.
Why the US targeted Banque Misr
The US Treasury said Banque Misr’s UAE operations had become an important channel for Iran’s access to dollars and international finance.
