Egypt’s NBE, Banque Misr to stop issuing 25% CDs before end of January

Doaa A.Moneim , Monday 16 Jan 2023

The National Bank of Egypt (NBE) and Banque Misr are set to stop the issuance of the certificates of deposit (CDs) with 25 percent annual yield before the end of January as the proceeds have covered the target, the two banks announced on Monday.



The two banks started issuing these CDs, which are also available with a monthly yield of 22.5 percent, earlier in January.

The move came a few days before the Central Bank of Egypt applied the third wave of depreciation of the local currency, which has sent the Egyptian pound to its lowest level on record against the US dollar.

The issuance of these CDs aimed to contain the rising inflation, which is the highest in four years, by encouraging savings.

The NBE unveiled that its proceeds from the sales of these CDs have reached EGP 200 billion. They have sold over 60 percent of the certificates they offered, attracting 35,000 new clients to the bank.

On Banque Misr side, the bank said that it also plans to stop the issuance of these CDs as their proceeds have met their target.

Last week, the two banks said that the proceeds of these certificate sales reached over EGP 100 billion less than two weeks of their issuance.

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