Egyptian Dollar CDs Attract US$ 181 Mln In 8 Months

The Egyptian dollar-denominated certificate of deposit launched by the National Bank of Egypt (NBE), Banque Misr, National Bank of Abu Dhabi (NBAD), National Bank of Kuwait, Ahli United Bank, Arab Bank and Arab Banking Corporation attracted US$ 181 million in deposits eight months after it was launched.

Sources said the banks target to sell 62, 420 certificates with expected yield of more than US$ 2 billion. Despite having a high return of 4%, the certificate does not witness a high demand because Egyptian expatriates are wary about the economic and political situations in Egypt.

The new dollar certificate of deposit was launched by NBE last May 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.