Why did Egypt launch savings certificates with unprecedented returns?

Why did Egypt launch savings certificates with unprecedented returns?

Experts and analysts believe that the high-yield US dollar savings certificates offered by the National Bank of Egypt and Banque Misr are a new attempt by the banking sector to attract the remittances of Egyptian expatriates, according to Al Shorouk newspaper.

According to analysts, the certificates aim to collect the largest amount of foreign currency, although it would not provide dollar liquidity in the expected size.

This type of certificate will be more useful for citizens who save dollars at home to preserve the value of their money and for investors within the banking sector, they added.

Offering dollar savings certificates is an expected step from the state’s banking system to attract more foreign currency to provide for the obligations required to be paid, the head of the research department at Arabeya Online Mustafa Shafie, said.

“But I do not think that it will attract a large number of the expatriate workers,” he said, expecting the black market to also be activated and exchange rates to rise on the black market to seize the dollar, making it more attractive to the remittances of expatriates.

Shafie believes that certificates can be attractive to a small part of foreign currency holders who own small amounts, but the