Bank Audi raises 3 bln Egyptian pounds from high-yield deposit certificates

Egypt’s eighth largest commercial bank, Bank Audi S.A.E., has raised more than 3 billion Egyptian pounds ($165.5 million) from its high-yielding certificates of deposit, its deputy chief announced Monday.

Bank Audi Egypt has offered 18-month certificates of deposit at 20 percent and three-year certificates of deposit at 16 percent following the central bank’s Nov. 3 move to freely float the Egyptian pound against foreign currencies.

Mohamed Abbas Fayed further told Amwal Al Ghad that Bank Audi Egypt has decided to slightly lower the return on its three-year certificates of deposit.

Bank Audi Egypt has collected around $50 million since Nov.3 flotation decision, Fayed said, adding that the bank has opened letters of credit worth $50 million approximately to meet import payments.

The Central Bank of Egypt’s (CBE) decision to float the Egyptian pound and raise key interest rates came as part of a set of reforms aimed at alleviating the dollar shortage, eradicating the black market, and stabilising the country’s flagging economy.