The President of Banque Misr and the President of the Federation of Egyptian Banks, Mohamed El-Etribi, said that Banque Misr and Al-Ahly Bank offered two certificates for a period of 3 years, one with an interest of 19% per month, and the other with a decreasing interest of 22%.
He confirmed that the proceeds of Banque Misr in issuing the new certificates on the first day amounted to 19 billion pounds.
Al-Etribi explained, during a phone call to the Al-Hekaya program broadcast on MBC Egypt, and presented by the journalist Amr Adeeb, that a certificate of diminishing interest was offered because monetary policy depends on reducing the volume of inflation in the coming period, adding that some citizens will prefer the 19% certificate, and others will prefer to buy 22% diminishing certificates.
He stressed that the two certificates are similar to each other, noting that whoever wants to break an old certificate he has can log into the bank’s application and will know the value of the loss when the certificate is broken, advising citizens not to break old certificates, which remain for a short period of time until they are expired, so as not to suffer a loss.
The head of Banque Misr expected a decline in the volume of inflation in the coming period, especially after offering new savings certificates at 19% and 22% interest, as the interest is higher than the inflation rate, adding that the central bank’s plan depends on the tendency to reduce the inflation rate in the coming period, noting that when inflation decreases The interest rate will decrease.
The President of the Federation of Egyptian Banks added that inflation is a million times more dangerous than raising the interest rate for a year, and therefore the most important thing for countries is to fight inflation, stressing that once the central bank uses its tools and dollar resources reach the state, the black market for dollars will be eliminated, as happened in 2016 at the time of the flotation.
The Central Bank of Egypt raised interest rates to 18.25% for the overnight deposit rate, 19.25% for the overnight lending rate, the Central Bank of Egypt’s main operation rate at 18.75%, and the Central Bank’s credit and discount rate at 18.75%.
After the interest decision, Yahya Aboul Fotouh, Vice Chairman of the Board of Directors of the National Bank of Egypt, confirmed that there is no truth to the reports that the National Bank of Egypt or any banks operating in Egypt issued a new savings certificate with a high return of up to 25% or 30%, in exchange for giving up the currency. foreign.
This article was originally published by RT.
