QNB, CIB issues high-yield saving certificates

Sohaila Khaled, Tuesday 4 Apr 2023

Qatar National Bank (QNB) and Commercial International Bank (CIB) have issued new certificates of deposit (CDs), following the lead of two major banks in Egypt.

photo: Reuters


On Tuesday, QNB announced the issuance of a new high-yield CD with a three-year term and an annual return of 19.25 percent.

The minimum purchase amount for this CD is set at EGP 500,000, and the holder can benefit from the bank's credit facilities.

On Monday, CIB issued a new CD with a monthly yield of 22 percent, requiring a minimum subscription of EGP 3 million for this certificate.

The issuance of these new CDs follows the issuance of  the high-yield CDs on Sunday by the National Bank of Egypt (NBE) and Banque Misr. These CDs have a fixed monthly yield of 19 percent and a declining annual yield of 22 percent, with a maturity of three years.

The NBE and Banque Misr announced on Monday that the issuance of these CDs had attracted EGP 67 billion in the first 24 hours.

The Egyptian banking sector's move to issue high-yield CDs is an effort to combat the soaring inflation in the local market, which has led to significant price hikes.

In February, Egypt's headline inflation exceeded 31 percent, and core inflation accelerated to above 40 percent, the highest in almost five years, according to official readings.

March inflation figures are set to be announced next week.

Last Thursday, Central Bank of Egypt raised the key interest rates by two percent, bringing the total hikes for these rates since March 2022 to 10 percent (1000 bps).

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