Investors and clients of Egyptian banks expected the offering of new savings vessels with a higher interest rate, especially after the Monetary Policy Committee of the Central Bank of Egypt decided in its meeting on Thursday, August 3, to raise the interest on deposits and lending by 1%, but the month has come to an end and no signs have yet appeared on that long-standing step. Interest rate hikes followed by the central.
Banking sources stated that the Assets and Liabilities Committees (ALCO) in Egyptian banks began their meetings at the beginning of the week following the interest rate hike by the Central Bank of Egypt to determine interest rates on the products they export, but none of them announced an increase in the return on savings vessels, nor did the banks issue certificates. New savings.
Expectations of issuing new savings certificates are often related to raising the main interest rates at the Central Bank of Egypt, as well as high inflation rates, in addition to the speculation of a new depreciation of the Egyptian pound against the dollar.
In its previous meeting, the Monetary Policy Committee of the Central Bank of Egypt decided to raise the interest rate by 1% to avoid inflationary pressures and control inflation expectations.
The committee’s decision contradicted the expectations of most analysts who were likely to fix interest rates, but if the monetary policy committee of the central bank maintained, in the last two meetings, the rates of the one-night deposit and lending return and the price of the main operation of the central bank at the level of 18.25%, 19.25% and 18.75%, according to arrangement, and the credit and discount rate was kept at 18.75%.
Informed banking sources told Al-Arabiya.net: “There is no intention to offer new certificates with a return higher than the one offered at the present time, but on the other hand, there is a tendency to expand the issuance of dollar certificates during the coming period.”
The sources pointed out that the issuance of new certificates is mainly related to calming inflation numbers, and during the last period, the certificates that were issued were not able to calm commodity price inflation in the targeted manner, despite the issuance of certificates with a return of 23% at some banks.
Weeks before the Central Bank of Egypt’s decision, banks offered various savings certificates, including the “Ibn Misr” certificate offered by Banque Misr. It offers a return of 22% in the first year, 18% in the second year, and 16% in the third year, provided that the return is paid monthly.
It is possible to recover the value of the certificate or part of it after 6 months have passed from the date of issuance of the certificate, and the value of the certificate can be recovered in part according to the redemption rules of the certificate, and it is also possible to borrow with its guarantee.
The bank also issued a “top” certificate with a fixed interest rate of 19% for a period of 3 years. The return is paid on a monthly basis. The value of the certificate or part of it can be redeemed after 6 months have passed from the date of issuance of the certificate. It is also possible to recover its value or part of it according to the redemption rules of the certificate, and the customer can borrow against its guarantee.
While the interest rates of the National Bank of Egypt certificates change, according to the type of certificate, as it offers 4 types of savings certificates, which are the local currency certificate, the foreign currency savings certificate, the investment certificate, which are A, B, and C certificates, and my country certificate.
The platinum certificate offers the highest certificate interest, at a rate of 19% for the monthly return, and its duration is 3 years. This certificate provides a fixed return throughout the duration of the certificate and can be purchased starting from one thousand pounds and its multiples.
The platinum certificate also includes a graduated return, as the return rate on the platinum certificate changes during the certificate period, so the return value in the first year of the certificate is 22%, while in the second year it offers a return of up to 18%, and in the third year it offers a return of 16%, and it can be purchased Starting from one thousand pounds and its multiples.
It also offers the platinum certificate with a variable return, which has a value of 18.5%, with a variable return linked to the deposit rate of the Central Bank of Egypt with an increase of (0.25%). The business day following the day of purchase.
The Egyptian Gulf Bank offered a “Tharwa Plus” certificate with a gradual monthly return of 23% in the first year. The return on the certificate is paid at a fixed rate of 23%, at the end of each month, during the first year only, while it is transferred to a variable one in the remaining two years, as it follows the deposit rate announced by the Central Bank of Egypt.
The certificate enables the customer to obtain a credit card, overdraft or loan up to 90% of the value of the certificate. The value of the certificate can be redeemed 6 months after its issuance.
On July 26, the Arab African International Bank in Egypt offered a savings certificate in Egyptian pounds for a period of 3 years, with a return of 40% of the value of the certificate, paid in advance, with a minimum of 5,000 pounds and multiples of one thousand pounds, without a maximum limit.
The bank said that the certificate cannot be broken before 6 months have passed from the date of the linkage, and the discount rate from the added interest value in advance is as follows. If it is broken after 6 months, 95% of the interest value is deducted, and in the second year 63% of the interest value is deducted. In the third year, 28% of the interest amount is paid.