Egyptians Accumulated USD 200 million in Banks During December

Egyptian banks have witnessed a significant increase in dollar deposits, with a rise of USD 199 million recorded in December, according to data from the Central Bank of Egypt. The surge in foreign currency deposits comes after two consecutive months of decline, during which deposits reduced by approximately USD 482 million. The total customer deposit balances in foreign currencies reached USD 50.464 billion at the end of December, compared to USD 50.265 billion at the end of November.

The growth in dollar deposits can be attributed to several factors, including transfers from the Egyptians' car initiative abroad and the popularity of dollar savings certificates offered by government banks, which offer interest rates between 7% and 9%. Egyptian banks have raised the interest rates on dollar deposits in response to the US Federal Reserve's tightening monetary policy, aiming to curb inflation. The current interest rate on the dollar stands at 5.5%, a substantial increase from the previous rate of 0.25%.