NBE’s 25% saving certificates will be suspended not later than Jan-end: Okasha

Proceeds from the 25 % and 22.5% saving certificates launched on by the National Bank of Egypt (NBE) and) reached nearly EGP 200 billion in only 48 hours, NBE Chairman Hisham Okasha said on Monday

He added that NBE has achieved the specific purpose of launching the high-yield savings certificates so it will not be around for much longer than the end of this month and that the bank is currently studying the specific date of suspending the issuance of these certificates.

He also indicated that 60% of these certificates were carried out through alternative channels (Al-Ahly Net, Al-Ahly Mobile, and the call center).

Recently, Egypt’s biggest state-owned banks, NBE and BM, issued new one-year maturity saving certificates with a 25 percent yield after one year, the highest yield on record, in an aim to contain rising inflation by encouraging savings.

The move has come as the local market has been anticipating a devaluation of the Egyptian pound for the third time in recent months, following the approval of a new $3 billion loan programme from the International Monetary Fund (IMF), which took place in December.

The bank certificates aim to contain the rising inflation by encouraging savings. Egypt’s inflation has been accelerating rapidly since March, reaching over 21 percent by the end of November – the highest rate in almost five years.