The Central Bank of Egypt announced various decisions on Thursday aimed at achieving reform measures to ensure the protection and stability of the Egyptian economy, as well as achieving sustainable economic growth.
The Monetary Policy Committee of CBE announced raising the interest rate by 200 basis points, which was followed by an urgent announcement to raise the return on saving certificates in Banque Misr and the National Bank of Egypt to 17.25 percent.
As a result, a number of Egyptian banks operating in the market raised the returns on saving certificates to attract more customers and achieve financial returns.
Amid the deliberation of decisions, a large number of citizens wondered about the new savings certificates, and what will be the highest return from these savings certificates.
Raising the interest rate on saving certificates
Economist Hani Genena said that in light of the CBE’s decisions, “We expect issuance of saving certificates with a very high return that will break the 18 percent barrier and reach 20 percent.”
These certificates will be offered for a short period ranging from six months to a year, after which they will be suspended as had happened with the 18 percent certificates, to achieve financial returns for banks.
Speaking to Al-Masry Al-Youm, Genena said that the decision to link saving certificates to detaching local currency from the US dollar is one of the important factors that will preserve the value of the Egyptian pound, as it will allow the customer converts foreign currency to the Egyptian pound and then invest in the certificate.
NBE’s saving certificates
The National Bank of Egypt issued a platinum saving certificate for a period of three years, with an annual return of 17.25 percent.
The Bank’s Assets and Liabilities Committee decided to increase the rate of return on the three-year platinum certificate with a monthly return, to become 16 percent annually instead of 14 percent, as of Thursday, October 27, for new or automatically renewed certificates.
The bank also issued the same certificate at a rate of 16.25 percent annually on a quarterly return, and at a rate of 16.50 percent annually on a semi-annual return.
Banque Misr saving certificates
Banque Misr also raised the interest rate on the Summit Saving Certificate for a period of three years, with an annual return of 17.25 percent.
The Bank’s Assets and Liabilities Committee also decided to increase the return rate on the three-year Summit Certificate with a monthly return at 16 percent per annum instead of 14 percent, which applies only to new or automatically renewed certificates.
Banque Misr issued the Summit Certificate at rate of 16.25 percent annually on a quarterly return periodicity.
Edited translation from Al-Masry Al-Youm