The National Bank of Egypt and Banque Misr announced the issuance of two new certificates of deposit (CDs) for a period of three years on Sunday, 2 April, reflecting the Central Bank of Egypt’s policy to target inflation.
The first certificate is fixed for a period of 3 years at a rate of 19 percent annually, and the return is paid monthly. The second certificate is for a period of 3 years at an annual rate of 22 percent for the first year, 18 percent for the second year, and 16 percent for the third year, and the return is paid monthly.
Egypt’s annual inflation skyrocketed this year, reaching 31.9 percent, its highest in five and a half years. It demonstrates the severity of the economic strains that Egypt has been experiencing since early last year.
Egypt has sharply devalued its currency three times since February 2022, which adds to the costs of paying back government debt, including the USD 3.5 billion (EGP 107 billion) in repayments for previous IMF programmes coming due by the end of this year.
These economic strains have heavily impacted Egypt’s standards of living, leading many to cut back on life’s basic essentials. Many people now find it difficult to acquire basic necessities like cheese and cooking oil, which were once basic necessities. Several products have seen price increases of up to three times in recent months.