Two more Egyptian banks raise interest rates on savings certificates

Bankers and local media said the moves were intended to support the currency and also increased the likelihood of a central bank hike next month (AP)

Egypt’s third largest state bank, Banque Du Caire, and the private Societe Arabe Internationale bank on Tuesday raised interest rates on their three-year saving certificates to 12.5 percent from 10 percent, tracking moves by other lenders.

On Saturday, the two largest state banks, Banque Misr and National Bank of Egypt (NBE) launched savings certificates for Egyptian pounds with an interest rate of 12.5 percent.

Bankers and local media said the moves were intended to support the currency and also increased the likelihood of a central bank hike next month.

The average interest rate on such savings certificates at Egyptian banks is around 10 percent, according to bankers.

“We had to do it to be competitive with the other banks,” Ossama El Manialawy, Assistant General Manager at the Treasury of Societe Arabe bank, said on Tuesday to explain the move.

Yields on Egyptian treasury bonds and bills were almost unchanged at auctions on Sunday and Monday, despite state banks’ decision to up the rates.

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Last Update: Wednesday, 20 May 2020 KSA 12:04 - GMT 09:04
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