The National Bank of Egypt (NBE) and Banque Misr are now offering 7 percent interest US dollar certificates to be paid back in dollars, according to posts published by the banks on Facebook on 25 July. They are also offering 9 percent interest dollar certificates with the interest paid up front in Egyptian pounds.
The annual 7 percent return of the ‘Al Ahly Plus in Dollars’ and ‘Elite’ certificates is paid out quarterly in US dollars, with the possibility of taking out a loan of up to 50 percent of the value of the investment. According to NBE, the loan would be at an interest rate of 2.25 percent less than the lending rate of the Central Bank of Egypt. The duration of the certificate is three years.
The 9 percent ‘Al Ahly Instant in Dollars’ and ‘Al Qimma’ certificates, on the other hand, pay their interest back in Egyptian pounds, while repaying the original investment in US dollars. The interest payment in Egyptian pounds is made up front, and includes all three years’ interest at 27 percent.
For example, if USD 1000 (EGP 30900) is invested in the Al Ahly Instant certificate, the Egyptian pound equivalent of USD 270 (EGP 8341) would be paid out instantly, and the USD 1000 would be repaid at maturity, three years on.
The minimum deposit for certificates is USD 1000 and deposits are determined by multiples of 1000. Investments can be made starting 26 July.
The previous return on dollar certificates was 5.15 percent at NBE and Banque Misr.