State-owned banks scrap high-yielding CDs, introduce new variable interest certificates

The country’s largest state-owned banks have decided to scrap their high-yielding certificates of deposits two weeks after the central bank cut key interest rates by 100 bps. Banque Misr stopped issuing its high-yielding 17% CDs as of last Thursday, Vice Chairman Akef El Maghraby said, while the National Bank of Egypt also scrapped its 17% certificates, both introducing instead variable rate, three-year CDs with yields that are 0.25% above key rates. Similarly, Banque du Caire announced it would be offering similar CDs as of Sunday and canceling its 17% certificates. Private banks had also lowered their rates and suspended high-yielding CDs earlier this month in response to the CBE’s decision.