05:49 PM
Monday 23 March 2020
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Cairo – Agencies:
Six bankers told Reuters on Monday that the Central Bank of Egypt instructed banks to cut interest on dollar deposits to 1% above the London inter-bank interest rate (LIBOR), a maximum that will be spent every three months, instead of 1.5% above (LIBOR).
“The aim of the measures is to control the exchange market and limit the expected dollarization operations after the interest rate cut,” said a banker with a government bank, who asked not to be named.
The central bank last week cut key interest rates by 300 points, following major cuts by global and regional central banks as part of economic stimulus measures in the face of the implications of the Corona virus outbreak.
On Sunday, Bank of Egypt and Al-Ahly Bank issued savings certificates in local currency, with a 15% return for one year.
A banker at Al-Ahli Bank, the largest bank in Egypt, said that the bank reduced the return on dollar deposits on savings certificates in dollars to 1.25% from 3% for the certificates of prepaid for 3 years, to 1.35% from 3.75% for five-year certificates, and to 1.5% from 3.75% For a new 3-year gold certificate.
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