NBE and Banque Misr issue new CDs with 19% and 22% yield over three years

Doaa A.Moneim , Sunday 2 Apr 2023

The National Bank of Egypt (NBE) and Banque Misr have recently issued two new certificates of deposit (CDs) with fixed yields of 19% and a decreasing yield of 22%. In a joint statement, the central banks announced the issuance of a CD with a 19% annual yield over three years.

NBE

 

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The other CD has a decreasing yield of 22%, disbursing a yield of 22% over the first year, 18% over the second year, and 16% over the third year. The issuance of these CDs follows the interest rate hike applied by the Central Bank of Egypt on Thursday and coincides with the due dates of the 18% annual yield CDs that started on March 19.

This action aims to absorb the liquidity from the local market as an effort to curb soaring inflation. Egypt's core inflation has surpassed 40%, while the headline inflation has hit over 31%, the highest in almost five years, according to the latest readings.

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