Bank of Egypt Lowers Interest Rates on Dollar Savings Certificates
The Bank of Egypt announced a reduction in interest rates for its popular dollar-denominated savings certificates, effective December 24, 2024. This move follows a recent interest rate cut by the U.S. Federal Reserve.
according to a bank statement, the annual return on the “al-Qimma” certificate will drop from 8.5% to 8%,while the “Elite” certificate’s return will decrease from 6.5% to 6%. These changes apply to new certificates issued after December 23,2024.
The Bank of Egypt cited the Federal Reserve’s decision to lower its interest rate by 0.25% for the second consecutive time in 2024 as a contributing factor. This reduction brought the U.S. federal funds rate to between 4.25% and 4.5%.
“The implementation of this decision will begin at the adjusted interest rate in all bank branches starting Tuesday, December 24, 2024, for the new certificates that will be issued.”
The Al-Qimma certificate, available in denominations of $1,000 and multiples thereof to both Egyptian and foreign investors, offers a three-year term with interest paid upfront. The Elite certificate, also available in $1,000 denominations and multiples, pays interest quarterly. Both certificates can be purchased online, through mobile banking, at Bank of Egypt branches, and via ATMs.
A key feature of the elite certificate is the option for holders to borrow up to 50% of the certificate’s value in Egyptian pounds, with a maximum loan of 10 million pounds. Both certificates can be redeemed after a six-month period, subject to specific terms and conditions.
This interest rate adjustment by the Bank of Egypt reflects the interconnectedness of global financial markets and the impact of U.S.monetary policy on economies worldwide. Investors holding or considering these certificates should review the updated terms and conditions available on the Bank of Egypt website.
Note: This article is for informational purposes only and does not constitute financial advice. Consult with a financial professional before making any investment decisions.
Here’s a breakdown of the information provided in the article about interest rate changes on dollar savings certificates at the Bank of Egypt:
Key Changes:
Interest Rate Reductions: The Bank of Egypt lowered interest rates on its popular dollar-denominated savings certificates:
“Al-Qimma” certificate: from 8.5% to 8%
“Elite” certificate: from 6.5% to 6%
Effective Date: The reduced rates apply to all new certificates issued after December 23, 2024.
Reasons for the Change:
The Bank of Egypt cited the U.S. Federal Reserve’s recent interest rate cuts as a contributing factor.
About the Certificates:
Al-Qimma Certificate:
Minimum investment: $1,000 (multiples allowed)
Term: 3 years
Interest: Paid upfront
Available to: Egyptian and foreign investors
Elite Certificate:
Minimum investment: $1,000 (multiples allowed)
Interest: Paid quarterly
Loan Option: Up to 50% of the certificate’s value in Egyptian pounds (maximum loan: 10 million pounds)
Common Features:
both certificates can be purchased online,through mobile banking,at Bank of Egypt branches,and via ATMs.
Both can be redeemed after a minimum holding period of 6 months (subject to specific terms and conditions).
Critically important Notes:
Investors should consult the Bank of Egypt’s website for updated terms and conditions.
This article is for informational purposes only and should not be considered financial advice. consult with a financial professional before making investment decisions.
