Why have NBE and Banque Misr introduced new CDs?

Why have NBE and Banque Misr introduced new CDs?

Economist Ashraf Ghorab explained the reasons behind why the National Bank of Egypt, and Banque Misr are offering two certificates of deposits online with a return of 23.5 percent per month and 27 percent per year for a period of one year, starting Friday.

This was an expected move, he said, especially following the the expiration of the terms of CDs offered by the two banks with a 25 percent return, which matured at the beginning of this January.

Regarding the reasons for offering new savings certificates, Ghorab added that the expiration of the 25 percent certificate offered by the two banks in the beginning of last year and depositors receiving their entitlement may prompt them to invest in gold, real estate, or other types of safe investment instead of depositing money in banks.

This comes in order to preserve the value of their money as a result of the rise in inflation rate, he explained.

Therefore, the two banks hastened to issue the 23.5 percent and 27 percent CDs to absorb this money and withdraw liquidity, Ghorab said, instead of pumping it into the markets and causing an increase in demand and in prices – thus impacting inflation rates that have declined in