The National Bank of Egypt (NBE) has issued on Wednesday new three-year certificate of deposit (CD) with a decreasing annual yield of 30 per cent over the first year, 25 per cent over the second year, and 20 per cent over the third year, the Federation of Egyptian Banks (FEB) reported on its website.
The interest rate for the three-year platinum decreasing-yield certificate has been adjusted, to be paid monthly at an annual rate of 26 per cent for the first year, 22 per cent for the second year, and 18 per cent for the third year for new issuances from March 6.
The committee also decided to adjust the interest rate on the three-year fixed-return platinum certificate to be 21.5 per cent annually for new issuances starting from March 6, instead of 19 per cent with monthly interest payments.
The platinum certificates with an annual yield of 27 per cent to be paid out at the end of the period and 23.5 per cent to be paid out monthly will continue, and a new interest rate of 23 per cent with daily interest payments will be offered.
Earlier in the day, Central Bank of Egypt (CBE) decided to free float the exchange rate of the local currency. It also increased the interest rates by six per cent at once, bringing the overnight deposit and lending rates and the main operation rate to 27.25 per cent, 28.25 per cent and 27.75 per cent, respectively.
