02:42 PM
Tuesday, December 27, 2022
I wrote – Manal Al-Masry:
After hours and days of speculation, the National Bank of Egypt and Egypt offered a 20% interest certificate out of the question during the current period, according to the assurances of the heads of the two banks yesterday, Monday, despite the Central Bank raising the interest rate by 3% at the last meeting of the Monetary Policy Committee last Thursday.
The announcement of the two banks to issue high-yield certificates depends on the directives of the Central Bank, as they are its arms in implementing the vision of monetary policy, which is the main reason for issuing such certificates during the last 6 years.
Hisham Okasha, President of the National Bank of Egypt, confirmed that there is no thinking about issuing high-yield certificates after the Central Bank’s recent decision to increase the interest rate by 3%.
Okasha explained, during his intervention on the Al-Hekaya program with the journalist Amr Adib, that the news circulating about the National Bank offering a 20% certificate is false and incorrect.
Okasha added that the interest applied to deposits is always less than lending, but the certificates currently offered have a high return and are less or slightly equal to interest rates on lending, and he is on the right track, which does not require the existence of new certificates.
He stated that the National Bank offers a certificate with an annual interest rate of 16% at a monthly rate of return exchange, 16.25% annually at a quarterly return exchange period, 16.5% annually at a semi-annual return exchange period, and 17.25% at an annual exchange rate, which is the price that is equivalent to the price of Lending is with the Central Bank now and therefore there is no need for a higher interest certificate.
Since 2016, the Central Bank has been using the National and Egyptian Banks to implement monetary policy by issuing high-return certificates in times of difficult economic conditions and waves of inflation, which coincide with the liberalization of the pound’s exchange rate against foreign currencies and its decline, with the aim of having a real return on customers’ savings to preserve the real value. for their savings.
The value of the pound exchange rate decreased by about 57% during the current year, passing through the first and second waves of devaluation in March and October.
The annual core inflation rate rose during November to 21.5%, while the general urban inflation rate increased to 18.7%, the highest rate in nearly five years.
Mohamed El-Etreby, President of Banque Misr, said, in an intervention on the “Last Word” program with media personality Lamees El-Hadidi, that the bank is currently studying interest rates on its certificates after the Central Bank’s recent decision to decide whether to raise them or not.
He added that the interest on variable-return certificates linked to the deposit rate with the Central Bank (Corridor) rose by 3% automatically after the Central Bank’s decision, while the triple certificate of fixed return continues to be offered at an interest of 17.25% annually, on which the return is spent annually.