Egypt's market losses accelerate as more banks raise interest rates

Egypt's market continues to fall drastically for the third consecutive session after more banks joined the race to raise interest rates for savings certificates, increasing speculation on the monetary policy.

Benchmark index, EGX30, plunged 4.4 percent on Tuesday’s session to record 6.824 points after falling by 2.8 percent and 2.6 percent the previous session.

On Sunday, Egypt's largest two state-owned banks launched savings certificates for Egyptian pounds at an interest rate of 12.5 percent, above the average 10 percent currently offered by banks.

The move created speculation for a possible floatation of the pound and a possible interest rate hike by the central bank.

On Tuesday, Banque du Caire and SIAB bank also launched saving certificates with 12.5 percent interest rates.

A new central bank governor, Tarek Amer, will take charge at the end of this month, with analysts and businesses speculating a different approach to monetary policy.