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Tuesday, 17 May 2016

NBE generates USD 169 mn from certificate sales

The National Bank of Egypt (NBE) sold USD 169 mn worth of high-interest-rate certificates launched in March to attract foreign currency into the banking system, NBE deputy chairman Yehia Aboul Fotouh told Reuters. The certificates were issued to foreign currency holders who convert their holdings to EGP and carried an interest rate of 15%. Aboul Fotouh’s remarks contradict earlier news citing unnamed sources as saying the certificates were being scrapped because they failed to attract significant market interest. He said NBE collected USD, EUR, SAR, and AED from the certificates’ sales. It was not clear how much foreign currency Banque Misr and Banque du Caire collected from the certificates, but, as Reuters notes, the operation did not appear to ease the USD shortage in the banking system. The certificates were made available for two months only, with the subscription period ending yesterday.

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