The exchange rate of the dollar against the Egyptian pound shot up at the beginning of trading today, Monday, March 21, in several banks, together with the rise in interest rates.
The price of the dollar registered 17.40 pounds in the National Bank of Egypt, the largest government bank, for the purchase price, and the sale price was 17.50 pounds, which is the same price that circulates in Banque Misr. , the second largest government bank in the country. country.
The price of the dollar rose in the Bank of Alexandria, registering 17.42 for purchase and 17.52 for sale.
Certificate of 18% in Banque Misr and Al-Ahly Bank
The National Bank of Egypt decided to issue a savings certificate that enjoys a fixed rate of return during the retention period of the certificate. The certificate’s annual rate of return is 18%, where the certificate period is one year and the return is paid monthly.
On the other hand, Banque Misr today reissued the new savings vessel, the “Talaat Harb” certificate, which is a savings certificate that enjoys a fixed rate of return for the entire holding period of the certificate, and the annual yield of the certificate is 18%
The duration of the certificate is one year, and the return is paid monthly. The term is computed from the business day following the purchase. The categories of the certificate start at 1,000 pounds and its multiples, and are issued to natural persons or minors. old.
It is possible to borrow against the guarantee of the certificate, in addition to the possibility of issuing credit cards with its guarantee. The certificate can be redeemed after 6 months from the business day following the date of purchase (date of issue).
The certificates can be purchased at any of the bank’s branches, which total more than 750 branches and banking units spread throughout the country.
Interest rates in Egypt
Egypt’s central bank said in a statement on Monday that it raised key interest rates by 100 basis points at an extraordinary meeting of the Monetary Policy Committee.
The central bank has set the overnight lending rate at 10.25% and the overnight deposit rate at 9.25%, citing global inflationary pressures exacerbated by the war in Ukraine.
The bank said that global inflationary pressures began to appear after signs of recovery of the world economy from the coronavirus pandemic, due to the evolution of the conflict in Ukraine.
“Added to these pressures are the notable rise in global commodity prices, supply chain disruptions and rising freight costs, in addition to fluctuations in financial markets in emerging countries, which have generated domestic inflationary pressures and increased pressure on the external balance sheet,” the bank said. said.
Egypt, often the world’s largest importer of wheat, relies heavily on grain imports from Russia and Ukraine.
Headline inflation accelerated to its highest level in almost three years in February, at 8.8% to touch the upper end of the central bank’s target range of five to nine percent.
The bank maintained its inflation target on Monday, saying “the path of future interest rates remains tied to inflation expectations and not prevailing inflation rates.”
The Monetary Policy Committee was scheduled to meet on March 24.