The proceeds of the sale reached High interest 18% certificate In Egypt, a record number of 331 billion pounds was reached, within 10 days of announcing its offering.
On Monday last week, Al-Ahly and Egypt Banks decided to offer a new savings certificate with a high interest rate, after the Central Bank announced an increase in the interest rate by 1% for the first time in five years, and also announced a decrease in the value of the Egyptian pound against the dollar.
According to a statement by the National Bank, the Vice President of the Bank, Yahya Aboul Fotouh, said that the bank’s total proceeds from selling the certificate with a return of 18% jumped to 218 billion in the first 10 days of its offering at the end of trading yesterday.
For his part, the head of Banque Misr, Mohamed El-Etreby, revealed that the bank’s total proceeds from selling the high-return certificate jumped at the end of Wednesday’s trading, to about 113 billion pounds within 10 days of announcing its offering.
While the deadline for offering this certificate has not been announced yet, the branches of the National Bank and Banque Misr are witnessing severe crowding as customers continue to demand these certificates.
Informed sources told Al Arabiya.net that the issuance of this certificate caused an increase in the demand for bank branches by no less than 50% from the announcement of its offer until yesterday, Wednesday.
The Central Bank of Egypt had decided, in an extraordinary meeting on Sunday, before last, to raise interest rates by 100 basis points, equivalent to an increase of 1%.
The Monetary Policy Committee of the Central Bank of Egypt decided to raise the overnight deposit and lending rates and the central bank’s main operation rate by 100 basis points to reach 9.2%, 10.25 percent, and 9.75%, respectively.
The credit and discount rate was also raised by 100 basis points to 9.75%.
The decision to move interest rates will absorb the huge liquidity in the local market, which is one of the direct causes of the accelerating waves of price increases of all kinds of commodities.
In parallel with these decisions, the state-owned banks represented by the National Bank of Egypt and Banque Misr announced the launch of an investment certificate with an annual return of 18%.
The duration of the certificate is one year, and the return is paid monthly. The period is calculated from the working day following the purchase. The categories of the certificate start from 1,000 pounds and its multiples, and are issued to natural or minor individuals.
It is also possible to borrow against the guarantee of the certificate, in addition to the possibility of issuing credit cards with its guarantee, and the certificate can be redeemed after the lapse of 6 months, starting from the working day following the date of purchase (issuance date).