Today, Wednesday, the National Bank of Egypt and Banque Misr announced the issuance of new savings certificates with a return of 25%, which is the largest certificate issued in the country with this high return.
This announcement coincides with the decline of the Egyptian pound to approximately 26 pounds to the dollar today, Wednesday, while continuing to decline. Thus, the pound recorded the largest daily movement since the Central Bank allowed it to decline 14.5% on October 27.
“The certificate has been provided since the start of work today (Wednesday), in all the bank’s branches and all the bank’s electronic channels,” Banque Misr said in a statement.
According to the statement, the value of the return will be spent in full after the end of the certificate’s term (after a year) or it will be spent on a monthly basis with a return of 22.5%, which are the same controls announced by the National Bank after announcing the issuance of its savings certificate.
In the past year, the National Bank and Banque Misr issued a certificate with an annual return of 17.25%, to be spent annually.
Savings certificates are bonds with an annual return determined by banks, through which they aim to help the central bank withdraw part of the liquidity from the markets to curb inflation.
The annual inflation rate in Egypt jumped to 19.2% last November, from 16.3% in the previous October.
Last month, the Monetary Policy Committee of the Central Bank of Egypt decided to raise the overnight deposit and lending rates, and the price of the central bank’s main operation, by 300 basis points.