Source: Egypt Today
CAIRO – 5 January 2024: Banque Misr and the National Bank of Egypt (NBE) have announced the issuance of one-year maturity saving certificates with an impressive 27 percent annual yield or 23.5 percent monthly yield. This sets a new record for the highest yield in the country.
The new certificates are accessible to individuals with a minimum purchase value of LE 1,000 and can be conveniently obtained through Internet or mobile banking services or by visiting the banks’ branches located across the nation.
Both Egyptian citizens and foreigners, including adults and minors, are eligible to apply for these certificates.
The decision follows the expiration of one-year maturity certificates that were issued by several banks in Egypt last January, which offered a 25 percent annual yield.
Egyptian banks are actively working to curb the impact of rising inflation in the country by encouraging citizens to invest in saving certificates.
Amid the increasing exchange rate of the US dollar against the Egyptian pound, many individuals have been inclined to invest in gold, real estate or other resources. In this context, offering attractive saving certificates serves as an alternative investment avenue.
The Egyptian pound has experienced a significant depreciation, losing more than 75 percent of its value against the US dollar since March 2022. Presently, one US dollar is officially valued at around LE 30.85, creating a substantial gap compared to the black market, where the dollar is trading at over LE 50.
Egypt has faced foreign currency shortages and economic pressures in light of the Russia-Ukraine war and its global implications. Meanwhile, the country is committed to maintaining a flexible exchange rate under its agreement with the IMF in 2022 to borrow $3 billion over 46 months.
Despite receiving the initial installment of the loan in December 2022, subsequent tranches last year were delayed as the lender is waiting for Egypt to implement further economic reforms. In December, Kristalina Georgieva, the Managing Director of the IMF, said that the bank would proceed with the next steps regarding the loan soon.
Moreover, Georgieva revealed that the IMF is expected to increase the value of the loan provided to Egypt in light of the impacts on the Egyptian economy inflicted by external factors.
