NBE and Banque Misr issue new savings certificates with a return of 22%

NBE and Banque Misr issued a new savings certificate with a diminishing annual return starting from 22% in the first year, then 18% in the second year, and 16% in the third year.

The two banks also decided to issue a new fixed certificate for a Maturity of 3 years, with a return of 19%, to withdraw liquidity from the markets to face inflation

This came after the Central Bank of Egypt raised interest rates by 200 basis points, in the second meeting of MPC during 2023, last Thursday.

This is CBE's first increase in 2023, after it raised interest rates by 8% (800 basis points) last year.

This came as an effort by the Central Bank to face inflation, and attract foreign investments in hard currency for government debt instruments, after $22 bn left the market After the Russian-Ukrainian crisis.

The real interest rate in Egypt is -13.65%,

Nominal interest rate minus inflation, according to the latest data indicating that the inflation rate in Egypt exceeded 31%.