Egypt: High-interest deposit certificates attract $3.5 bln

Dec 15, 2016

Certificates of deposit were offered to attract currency being held outside the banking system.

The Central Bank of Egypt (CBE) on Wednesday made it known that high-interest deposit certificates issued have attracted $3.47billion new investment inflow. The high-interest deposit certificates were issued by banks when the Egyptian pound was floated in November. 18-month certificates of deposit at 20 percent and three-year certificates of deposit at 16 percent were offered by Egypt's two largest state-owned banks in order to attract currency being held outside the banking system. The CBE had increased the basic interest by 3 per cent, boosting the deposit rate to 14.75 per cent and the lending rate to 15.75 per cent, while the main operation and credit at the CBE hit 15.25 per cent. Following this development, banks raised interest rates on saving vessels, reaching as high as 16-20 per cent
on saving certificates.