Egyptian Banks Cut Interest on Dollar Certificates

The national Bank of Egypt (NBE) and Banque Misr, the two largest government banks, cut interest on 3-year dollar savings certificates by about 0.50%.

"The bank has reduced the interest on the triple dollar certificate "Al-Ahli Fawry" to 8.5% instead of 9%, and the return on it is disbursed in advance in Egyptian pounds," Mohamed El-Eterbi, Chairman of the Board of Directors of the National Bank of Egypt.

He added that the interest of the "Al-Ahli Plus" dollar certificate for 3 years was also reduced to the interest on it reaches 6.5% instead of 7%, and the return on it is paid every 3 months.

Banque Misr also reduced the interest on the triple dollar savings certificate with the advance return paid in pounds to 8.5%, as well as reducing the interest of the triple dollar "Elite" certificate to 6.5%, and the return is disbursed in dollars every 3 months.

Egyptian banks last March applied an increase in the interest of deposits and certificates in dollars after the trend of the US Federal Reserve over the last two years to pursue a tight monetary policy and increase the interest rate on the dollar to 5.5% instead of 0.25% before the increases in order to curb inflation.