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Egypt's Banque Misr collects $850 million after pound flotation

The bank has met all importers' financial demands relative to essential and nonessential commodities, according to statements by bank head

Ahram Online , Sunday 18 Dec 2016
Egypt
Egypt's Banque Misr
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The head of Egypt’s second largest public lender, Banque Misr, announced Sunday that the bank’s yield of US dollars has reached $850 million since the central bank’s decision to float the local currency in early November, state-run news agency MENA reported.

Mohamed El-Atreby confirmed that the bank has met all importers' financial demands relative to essential and nonessential commodities, saying that the bank opened letter of credit worth around $1.4 billion.

According to MENA, he added that the outcome of three-year maturity saving certificates at a yearly yield of 16 percent as well as the 18-month maturity certificate at yearly interest rate of 20 percent — issued in the wake of the flotation decision — has reached EGP 12 billion and EGP 59 billion respectively.

The Central Bank of Egypt (CBE) decided last month to liberalise the value of the Egyptian pound against foreign currencies, allowing supply-and-demand to regulate the price at a forex auction.

The CBE's decision is an effort to alleviate the dollar shortage and put an end to increased trading on the black market.

The CBE also raised key interest rates by 300 basis points to attract more deposits. The overnight deposit rate, the overnight lending rate and the rate of the CBE's main operation have been raised to 15.75 percent, 15.25 percent and 15.25 percent respectively.

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