March 23, 2020 / 3:15 PM / 2 months ago

Egypt's central bank tells commercial banks to cut interest on dollar deposits -bankers

CAIRO, March 23 (Reuters) - Egypt’s central bank has told commercial banks to cut interest on dollar deposits to 1% above the London Interbank Offered Rate (Libor) instead of 1.5% above Libor, starting from Monday, six bankers told Reuters on Monday.

“The aim of the measure is to control the exchange market and reduce the expected dollarization operations after cutting the interest rates,” a banker working at a state bank said, on condition of anonymity because he is not authorized to speak to the media.

Egypt’s central bank slashed its main interest rate by 300 basis points at an unscheduled meeting last week, saying it was making a “preemptive” move to support the economy in the face of the coronavirus outbreak.

Reporting by Afaf Ammar and Ehab Farouk, writing by Amina Ismail, Editing by Catherine Evans

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