Interbank rate falls to 8.10 percent

CAIRO: The median overnight interbank rate on the pound fell to 8.10 percent on Wednesday from Tuesday s 8.154 percent, with the market experiencing short-term liquidity, bankers said. Four of nine banks contacted by Reuters had dealt overnight, between 8 and 8.15 percent. Rates at banks contacted on Tuesday were at 8.25 percent. We ve seen some offers in the market, but the market is liquid in the short-term because the central bank did not accept all the bids in yesterday s offer, one dealer said. The central bank had offered seven-day certificates of deposits worth LE 14.505 billion ($2.51 billion) at auction on Tuesday. It accepted bids worth only LE 7.6 billion. So there was some liquidity (today), the dealer said. The central bank sets a corridor for overnight interbank rates by offering to borrow funds from banks at 8 percent and to lend to them at 10 percent. Two of the banks had dealt one-week money at 8.05 and 8.30 percent. One bank had dealt one-week money on Tuesday at 8.30 percent. The pound had weakened slightly to LE 5.7677 against the dollar by 10:00 GMT from Tuesday s closing weighted average of LE 5.7673. Reuters