Egypt fears run on banks, imposes limit on withdrawals

Egypt has imposed a limit of £6,000 for people wishing to take money out of the country

Egypt has imposed a limit on the amount of money people can take out of the country, amid fears of an impending run on the banks.

The move to ban leaving with more than £6,000 came as thousands of Egyptians withdrew savings from banks to hoard cash at home.

Anxiety about a deepening political and economic crisis has gripped the country in past weeks, with many people rushing to buy dollars and take out their savings from banks.

Big business: A vendor sells nuts in front of a giant poster of a U.S. dollar outside a currency exchange office in Cairo as the Government announced a £6,000 limit on how much can be taken out of the country

As well as huge political problems, the country also has a faltering economy.

The panic came as the country’s new president, Mohammed Morsi, called for ‘unity’ after a referendum approved a controversial constitution which gave him and islamist allies more powers.

Follow IWB on Facebook and Twitter