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Investing.com – Hours after the governmental Banque Misr and Al-Ahly announced the issuance of savings certificates with a fixed return of up to 19%, the Commercial International Bank (EGX:) CIB announced a short while ago the issuance of a new savings certificate with a fixed annual interest rate of 22% for a period of 3 years with a return to be spent. per month, which is the highest return offered by Egyptian banks so far.
The bank stated that the new certificate with a fixed return will start with a minimum purchase of 3 million pounds, then multiples of 1,000 pounds.
Last Thursday, the Central Bank of Egypt raised the main interest rates by 200 basis points. The bank set the overnight lending rate at 19.25% and the overnight deposit rate at 18.25%.
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Certificates of the National Bank and Banque Misr
The National Bank of Egypt and Egypt announced, in a joint statement yesterday, Sunday, the issuance of two savings certificates for a period of 3 years, with a high return, in the first move after the Central Bank’s decision to raise the interest rate by 2% on Thursday.
The first certificate is fixed for a period of 3 years at a rate of 19% annually, and the return is paid monthly, and the second; Declining certificate for 3 years at an annual rate of 22% for the first year, 18% for the second year, and 16% for the third year, and the return is paid monthly.
However, the issuance of certificates with a decreasing return reflects the positive vision of declining interest rates during the coming period with the expected gradual decline in inflation with the stability of markets in light of international and domestic changes and the Central Bank of Egypt’s policy of targeting inflation.
External debt is rising
Egypt’s external debt increased by 5.2% during the fourth quarter of last year, reaching 162.9 billion dollars at the end of December, compared to 154.9 billion dollars in September, according to data issued by the Ministry of Planning and Economic Development.
Egypt’s external debt recorded an increase of about 12% on an annual basis compared to the end of December 2021, when it recorded a level of $145.5 billion, an increase of about $17.4 billion.
External indebtedness declined in the second and third quarters of last year, before increasing again in the last quarter.
foreign assets decline
According to data from the Central Bank of Egypt, Egypt’s net foreign assets declined by 49.8 billion in February, with increasing pressure on the local currency.
The data showed that it was the second decline in two months, and led to a decline in net foreign assets to negative 704.23 billion pounds from negative 654.43 billion at the end of January.
Reuters data confirms that net foreign assets decreased by $1.31 billion in February, using the exchange rates set by the Central Bank at the end of the month.
Pound futures
Meanwhile, the futures contracts for the pound witnessed a new decline, today, Monday, towards new highs, now exceeding the barrier of 41 pounds per dollar for a period of 12 months, according to Bloomberg agency data.
This comes in light of the stability of the pound in official transactions over the past few weeks, amid expectations of a possible devaluation of the Egyptian currency against foreign currencies, especially with the issuance of new savings certificates and the interest hike by the Central Bank of Egypt.
The latest data for futures contracts – for 12 months – indicates that the pound recorded levels of 41.15 against the dollar, today, Monday, after reaching 40.25 nearly two weeks ago.
