Proceeds from high-yield saving certificates in NBE and BM reach nearly EGP 100 billion in just 48 hours
According to Ahram online, proceeds from the 25 percent saving certificates launched on Wednesday 4/1/2323by the National Bank of Egypt (NBE) and Banque Misr (BM) reached nearly EGP 100 billion in only 48 hours, NBE Vice Chairman Yahia Abou El-Fotouh said on Saturday 7/1/2023.
Abou El-Fotouh stated on ONTV’s Kelma Akhira that the proceeds from the new certificates had reached EGP 66 billion at NBE and EGP 31 billion at BM by Friday evening.
The vice chairman also revealed that half of the proceeds were entirely new money, not money derived from other certificates and that some people exchanged US dollars to obtain those new certificates.
Egypt’s largest state-owned banks, NBE and BM, issued new one-year maturity saving certificates with a 25% yield after one year, the highest yield on record, to contain rising inflation by encouraging savings on Wednesday.
The certificates are also available at a 22.5 percent yield for monthly disbursement.
According to Abou El-Fotouh, more than 70 percent of the linking of certificates has been implemented through alternative channels (Al-Ahly Net, Al-Ahly Mobile, and the Call Centre).
He added that the employees in the two banks were present in the branches despite the Christmas holidays to reduce congestion on working days.
The vice chairman told ONTV that those certificates will only be available for a limited period given that they were issued for the specific purpose of fighting inflation and withdrawing liquidity.
“They will not last for a long time because they have many long-term effects on investments due to their high interest,” he added.
Considering the cost of those certificates for the banks, Abou El-Fotouh said the role of both NBE and BM was different than other banks as they have a role in Egypt’s monetary policies in the framework of the economic measures.
“It may have a high cost, but we can achieve revenues in other ways and items; both banks will handle the cost for a certain period to support the Egyptian economy,” he said.