Egypt's state banks offer dollar-deposit certificates to ease hard currency shortage-Xinhua

Egypt's state banks offer dollar-deposit certificates to ease hard currency shortage

Source: Xinhua

Editor: huaxia

2023-07-25 22:12:45

CAIRO, July 25 (Xinhua) -- Egypt's two state-owned banks issued Tuesday high-interest U.S. dollar-deposit certificates to lure hard currency back into the country's financial system.

On their Facebook pages, Banque Misr and the National Bank of Egypt said they are offering a three-year dollar-denominated deposit certificate with 9 percent annual interest to be paid upfront in Egyptian pounds.

Both banks also offer another three-year dollar deposit certificate with 7 percent interest paid quarterly in dollars. It will allow depositors to receive a loan equal to half its value with a maximum of 10 million pounds (about 324 dollars).

A deposit of 1,000 dollars is the minimum sum for buying a certificate, the two banks added.

The Egyptian local currency has lost about half its value since March 2022. The latest dollar-pound exchange rate stood at 30.90, almost doubling the rate of 15.75 at the beginning of 2022, according to the Central Bank of Egypt. Meanwhile, 1 dollar is sold at 40 pounds in the black market.

As a major grain importer, Egypt saw its economic crisis worsen over the past year after the Russia-Ukraine conflict disrupted the global food supply.

Egypt's annual inflation rate rose to an all-time high of 36.8 percent in June, compared to 14.7 percent a year earlier, according to the country's statistics agency.

The devaluation is part of the country's "shift to a durable exchange rate regime" demanded by the International Monetary Fund, which approved a loan of about 3 billion dollars to Egypt in December last year to finance its economic and structural reforms.

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