Egyptian Banks Issue New Dollar-deposit Certificates

The two largest government banks in Egypt announced Tuesday the issuance of two new savings certificates in US dollars for a period of three years, amid a crisis of dollar reserves.

The National Bank of Egypt (NBE) issued two new savings certificates in US dollars for a period of three years.

According to a statement by the bank, the first dollar certificate has a duration of 3 years, with an annual return rate of 7%, and the return is spent in the same currency quarterly, and it is also permissible to borrow against its guarantee up to 50% of its value in Egyptian pounds for investment purposes, with a maximum of EGP 10 million and a return rate of 2.25%, less than the Central Bank’s lending rate.

The duration of the second dollar certificate is 3 years, at an annual return rate of 9%, which is disbursed in advance in the equivalent in Egyptian pounds for the entire period, at 27% of the value of the certificate for the total duration of the certificate.

The categories of certificates are $1,000 and its multiples, and the return is calculated as of the business day following the day of purchase. Certificates can be redeemed after 6 months have passed from the date of purchase in accordance with the applicable rules and the announced recovery schedule.

The purchase of certificates is available as of Wednesday, July 26 through all bank branches or through Al-Ahly Net and Al-Ahly Mobile, as well as through the official website using credit cards not issued in Egypt. The bank’s customers residing abroad and do not have accounts in foreign currency can transfer the amounts required to purchase the certificates, and the bank will open sub-accounts for them in foreign currency.

For non-bank customers, they can also purchase through instructions accompanying bank transfers, indicating their national number and the product to be purchased.

Banque Misr also announced the launch savings certificates in US dollars for a period of 3 years, and they will be implemented in its branches as of Wednesday, July 26, 2023.

The first certificate, with a return of 9% annually, is a nominal certificate issued to Egyptians and foreigners. The return is paid in advance for three years, at a cumulative 27% in Egyptian pounds. The other certificate, with a return of 7% annually, is a nominal certificate issued to Egyptians and foreigners, and the quarterly return is paid in US dollars.

The date of issuance of the certificate starts from the working day following the deposit and is considered the basis for the return and refund, in accordance with the terms and conditions regulating that. Certificate holders can also borrow in Egyptian pounds and up to 50% of the redemption value of the certificate, with a maximum of 10 million pounds, and the certificates are redeemed in US dollars according to the terms and conditions regulating that.