The deposits of Egypt’s second biggest bank, the state-owned Banque Misr have jumped to 440 billion Egyptian pounds ($23 billion) boosted by its high-yielding certificates of deposit launched on Nov. 3, an official in the bank announced Monday.
Deposits recorded 290 billion pounds at the end of the financial year 2015-2016 ended on June 30, 2016.
Following the Egyptian pound flotation earlier on November 3rd, Banque Misr has offered 18-month certificates of deposit at 20 percent and three-year certificates of deposit at 16 percent.
The certificates of deposit were part of efforts to stabilise the Egyptian pound after the central bank ditched its U.S. dollar peg and raised benchmark interest rates by 300 basis points to try to unlock inflows and curtail the currency black market.
On November 3rd, Egypt’s central bank decided to freely float the pound and raise key interest rates 300 basis points as part of a set of reforms aimed at alleviating a dollar shortage and stabilising the country’s flagging economy.