Egypt launches new USD-dominated savings program

Three major Egyptian state-owned banks announced Monday the launch of a new dollar-dominated savings program.

The program targets the millions of Egyptians abroad in order to attract their savings in an attempt to improve the ailing economy.

The National Bank of Egypt (NBE), Banque Misr and Banque Du Caire said the certificate program targets Egyptian expatriates willing to invest their savings in their country. The certificate's minimum value is 100 U.S. dollars.

Egypt's Immigration and Expatriates Minister, Nabila Makram, told reporters in Cairo that the certificates will consist of one, three and five years maturation terms, with 3.5, 4.5 and 5.5 percent interest rates.

The minister said that the certificates program is in answer to increasing demands by Egyptians abroad wanting to invest their savings in their country.

Egypt's Cental Bank will oversee and guarantee the entire process, said the minister.

The decision endeavors to revive the country's deteriorating economy as well as increase its foreign currency reserves.

Both have markedly declined since Egypt's 2011 uprising when former president Hosni Mubarak was unseated from power and the situation worsened by the country's weak tourism sector.

In 2011, Egypt had 36 billion dollars in foreign currency reserves at the Central Bank.

However, the country lost about 20 billion dollars from the 36 billion dollars over the past five years due to political turmoil and regional instability. Endit