US Treasury proposes rule to bar Banque Misr UAE from dollar transactions, raising Egypt exposure

On Aug. 29, 2026 the US Treasury published a proposed rule that would, if finalized, sever the Emirati branches of Egypt’s Banque Misr from access to U.S. dollar transactions with correspondent banks, marking a formal step in Washington’s campaign of secondary sanctions tied to Iran.

If finalized, the rule would restrict Banque Misr UAE’s ability to clear dollar payments through correspondent banks, potentially complicating trade finance and dollar receipts for Egyptian importers and remitters. That could raise short-term FX and liquidity pressures in Egypt and increase risk premia for Egyptian sovereign and corporate borrowers; wider regional banks with Gulf links may face caution from correspondent networks.

End of the month-long public comment period and whether Treasury finalizes the rule or narrows its scope.