CAIRO: Egypt s median overnight interbank rate slipped to 9.75 percent on Wednesday from 9.772 percent on Tuesday as fewer banks bought certificates of deposits in auctions from the central bank, traders said.
The rate is slightly lower today as many banks took part in the CD auctions yesterday, and are trying to square their positions ahead of the vacation next week, said one trader.
The central bank was auctioning 120-day and 273-day certificates of deposits worth LE 9.5 billion ($1.7 billion) on Wednesday.
On Tuesday it offered 7-day and 274-day certificates worth LE 8.011 billion and accepted bids worth LE 6.806 billion.
Egypt has a public holiday from Dec. 29 to Jan. 1 for the Eid al-Adha holiday, and traders said Thursday would be the last day for banks to trade financial instruments from the central bank before the start of the new reserve ratio period next year.
Four out of 10 banks contacted by Reuters reported overnight deals between 9.5 and 9.85 percent, compared to a range between 9.75 and 9.85 percent on Tuesday.
Two banks reported dealing in 6-day money at 9.80 percent. No banks reported dealing in one-week money on Wednesday, compared to three banks dealing between 9.70 and 9.875 percent on Tuesday.
The central bank keeps overnight rates in a corridor 200 basis points wide, offering 8.75 percent on overnight deposits and lending at 10.75 percent.
By 1 pm local time (1100 GMT), the pound had strengthened slightly to LE 5.7085 to the dollar, from Tuesday s closing weighted average of LE 5.7086.
