Customers who hold the newly issued CDs or have certificates that have reached maturity date and wish to reinvest their proceeds can benefit from the new yields.
This decision came after the Central Bank of Egypt (CBE) raised the key interest rates by six percent (600 bps) in an unscheduled meeting held three weeks ago, resulting in a yield of 27.25 percent, 28.25 percent, and 27.75 percent for the overnight deposit rate, the overnight lending rate, and the rate of the main operation, respectively.
The discount rate also was raised by 600 bps to 27.75 percent.
CIB's interest yield increase marks the second time within two months, following a percentage hike in January, in line with the 27 percent yield, one-year CDs offered by the National Bank of Egypt and Banque Misr.
The new rise applies to the CIB's fixed-rate, three-month CDs as follows.
Premium CDs: The yield has been increased to 24 percent annually, with monthly returns. It can be purchased starting from a minimum of EGP 5 million and multiples of EGP 1,000.
Plus CDs: The yield has been increased to 23 percent annually, with monthly returns. It can be purchased starting from a minimum of EGP 1 million and multiples of EGP 1,000.
Prime CDs: The yields have been increased to 22 percent annually, with monthly returns. It can be purchased starting from a minimum of EGP 100,000 and multiples of EGP 1,000.
Egypt’s annual headline inflation reached a record level of 219.4 points in February, after maintaining its slight downturn for three straight months. This indicated an annual rate of 36 percent, compared to 31.2 percent in January, according to the latest calculations published by the Central Agency for Public Mobilization and Statistics (CAPMAS).
The reading is well beyond the seven percent (±2 percent) target that the CBE set in the fourth quarter of 2024.
The CDs are one of the tools that Egyptians use to hedge against soaring inflation.
After the CBE’s decisions on 6 March, the US dollar rate declined by over 60 percent against the Egyptian pound to average at EGP 46.7/1 USD for selling and EGP 46.6/1 USD for purchasing, compared to over EGP 50/1 USD for both buying and selling reached on 6 March.
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