CAIRO: The median overnight interbank rate on Egypt s pound rose on Tuesday to 8.35 percent from Monday s 8.072 percent after an auction for higher-yielding certificates of deposit drained market liquidity, traders said. Due to the central bank auction liquidity is lower, one banker said. Central bank instruments typically give greater returns than the interbank market. Bankers were waiting to see if their bids were accepted in an auction for LE 9 billion ($1.6 billion) worth of 7-day certificates of deposit, dealers said. Tuesday also marks the beginning of a new two-week period for calculating bank reserves. Rates generally rise at the start of that period. Two out of 11 banks contacted by Reuters had dealt overnight money at rates of between 8.1 and 8.4 percent, compared with rates of 8.0 and 8.05 percent on Monday. One bank reported dealing in one-week money, at a rate of 8.55 percent. No banks had reported one-week deals on Monday. The central bank effectively controls the range of overnight rates by offering 8 percent on overnight deposits and lending at 10 percent. By 10:00 GMT, the pound had weakened slightly to LE 5.7436 to the dollar, compared with Monday s closing weighted average of LE 5.7435. Reuters
Median interbank rate rises to 8.35 percent
