12:30 PM
Saturday 14 May 2022
I wrote – Manal Al-Masry:
A bank confiscation said that Al-Ahly and Egypt banks will not offer a savings certificate with an annual interest of 20% during the coming period, with monetary policy seeking to control inflationary pressures and the continuation of offering an 18% certificate.
On March 21, 2022, Banque Misr and Al-Ahly Bank issued a certificate with a high interest rate of 18%, following the Central Bank’s decision to raise interest rates by 1% for the first time in 5 years, in an exceptional meeting of the Monetary Policy Committee to control inflation, and absorb the negative consequences of the Federal Reserve’s raising of interest and the negative effects of the continuation of the Russian-Ukrainian conflict over Global supply of goods is in short supply.
The certificate attracted 18% of savings of nearly 650 billion pounds in Al-Ahly and Egypt banks within 55 days of putting it up for sale to customers.
The sources expected that Al-Ahly Bank and Egypt would offer a triple saving certificate with an interest rate of less than 18%, according to the results of a meeting of the Central Bank to settle the interest.
The Central Bank will meet next Thursday to discuss the interest rate at the Monetary Policy Committee’s meeting in its first meeting following its extraordinary meeting last March.
Expectations are increasing regarding the central bank’s decision to raise the interest rate during next Thursday’s meeting.
And Sahar El-Damaty, a banking expert and former Vice President of Banque Misr, had previously told Masrawy that offering a new certificate with a high interest is currently excluded and useless, with the certificate continuing 18% of high-return and absorbing liquidity from the market.
She explained that the rise in commodity prices will make the public need to have liquidity to manage their daily living expenses, and they have no surplus to invest in new certificates, especially with the 18% certificate being offered, which is rewarding and sufficient.