The first CD, called "Al Ahly Plus," offers a seven percent annual yield. Holders of this CD have the opportunity to secure a loan for investment purposes up to 50 percent of the total CD value, with a cap of EGP 10 million, which is backed by the CD itself. The interest rate for this loan is set at 2.25 percent.

The second CD, known as "Al Ahly Fawran," presents an even higher annual yield of nine percent. However, unlike "Al Ahly Plus," the yield for this CD will be disbursed in advance to the holders in Egyptian pounds throughout the three-year period, amounting to 27 percent of the total value of the CD.

Holders of "Al Ahly Fawran" cannot secure a loan that is guaranteed by the CD, and the CD will be redeemed in US dollars upon its due date.

Individuals can purchase these CDs through all NBE branches, as well as via the bank's online services Al-Ahly Net and Al Ahly Mobile. Additionally, the can be purchased through the bank's official website, even with credit cards that were not issued in Egypt.

The NBE is catering to Egyptian expatriates who are clients of the bank and willing to buy these CDs but lack banking accounts in hard currency. In such cases, the bank is offering to open sub-accounts in hard currency to facilitate their investment.

Those who are not existing clients of the bank can still purchase these CDs through banking transfers to specific accounts, which will be announced on Wednesday.

As of the same date, the NBE will also begin granting Egyptian expatriates the opportunity to obtain personal loans backed by their salaries. The loan amounts can range from a minimum of EGP 50,000 up to a maximum of EGP 3 million. In this arrangement, the monthly installments will be transferred in US dollars.

Simultaneously, Banque Misr has also made a similar announcement regarding the issuance of CDs with the same maturity and annual yields, to be available in all its branches.

Dollar shortage
 

The backdrop for these financial initiatives is Egypt's current challenge in coping with a shortage of US dollar liquidity in the local market and a financing gap estimated at $17 billion through 2026.

To address this, Prime Minister Mostafa Madbouly revealed earlier in July the government's plan to enhance the country's US dollar liquidity, aiming to reach $191 billion by 2026. The focus is on leveraging revenues from tourism, the Suez Canal, remittances, and commodity exports to bolster the nation's financial position.

In January, NBE and Banque Misr issued one-year maturity CDs with a 25 percent yield after one year, the highest yield on record.

Egyptian state-owned banks and the private sector have issued several high-yield CDs over the past 18 months as a tool to absorb the liquidity in the local market amid rising inflation and interest rate hikes.

The Monetary Policy Committee of the Central Bank of Egypt is set to convene on 3 August to review the key interest rates in light of the latest economic developments on the local and global levels.