Banks Sold Egyptian Dollar CDs Worth US$ 160 Mln In 7 Months

The yield on Egyptian dollar certificate of deposit launched by the National Bank of Egypt, Banque Misr, National Bank of Abu Dhabi, National Bank of Kuwait, Ahli United Bank and ABC Bank and Arab National Bank reached US$ 160 million during seven months, sources said.

Banks aim at selling 62,420 Egyptian dollar CDs worth US$ 2 billion, sources added. Despite having return of 4%, the certificate witnessed low demand since being launched as many of the Egyptians living abroad have fears about the effects of the current economic deterioration and political turmoil.

The new dollar certificate of deposit was launched by NBE in May 2011 with term of three years and annual return of 4% that is refundable after six months with a minimum purchasing limit of US$ 1000 and no maximum limit. The return is calculated from the beginning of the first day of the following month of the purchasing date as long as it precedes the following new month with at least five days.

Egypt has launched dollar certificates of deposit for Egyptians living abroad to support the country’s economy through offsetting the lack of dollar liquidity.