2:42 pm
Tuesday 27 December 2022
I wrote – Manal Al-Masry:
After hours and days of speculation, the National Bank of Egypt and Egypt offered an interest certificate of 20% out of question during the current period, according to the assurances of the top management of the two banks yesterday, Monday, despite the Central Bank raised the interest rate by 3% at the latest meeting of the Monetary Policy Committee last Thursday.
The announcement of the two banks to issue high yield certificates depends on the directives of the Central Bank, as they are its arms in implementing the vision of monetary policy, which is the main reason for issuing such certificates in the past 6 years.
Hisham Okasha, president of the National Bank of Egypt, confirmed that there are no plans to issue high-yield certificates after the central bank’s recent decision to raise the interest rate by 3%.
Okasha explained, during his speech on the Al-Hekaya program with journalist Amr Adib, that the reports circulating about the National Bank offering a 20% certificate are false and incorrect.
Okasha added that the interest charged on deposits is always lower than the loan, but the certificates currently being offered have a high yield and are lower than or slightly equal to the interest rates on loans, and he is on the right track, which does not require the existence of new certificates.
It said that the National Bank offers a certificate with an interest rate of 16% per annum at an exchange rate of monthly yield, 16.25% per annum at an exchange rate of quarterly yield, 16.5% per annum at a period of semi-annual exchange rate yield and 17.25% at an annual exchange rate, which is the price that is equivalent to the price the loan is with the central bank now and therefore there is no need for a higher interest certificate.
Since 2016, the Central Bank has been using the National and Egyptian Banks to implement monetary policy by issuing high yield certificates in times of difficult economic conditions and inflationary waves, which coincide with the liberalization of the pound against the currencies and its decline, with the aim of having a real return on customers’ savings to preserve real value for their savings.
The exchange rate of the pound has decreased by about 57% in the current year, passing through the first and second devaluation waves in March and October.
The annual core inflation rate rose to 21.5% in November, while the overall urban inflation rate rose to 18.7%, the highest rate in nearly five years.
Mohamed El-Etreby, chairman of Banque Misr, said in a speech on the “Last Word” program with media personality Lamees El-Hadidi that the bank is currently studying the interest rates on its certificates following the recent decision of the Central bank to decide whether to raise them or not.
It adds that the interest on the floating rate certificates linked to the rate of deposit with the Central Bank (Corridor) automatically increased by 3% after the decision of the Central Bank, while the triple fixed yield certificate continues to be offered at an interest of 17 .25%. annually, on which the yield is spent annually.
