CAIRO: The median overnight interbank rate on the Egyptian pound remained steady at 8.755 percent on Thursday in a liquid market, traders said.
The market has been very liquid for the past four months, since there have been no CDs (Certificates of Deposit), one trader said.
Banks tend to turn to the interbank market in the absence of auctions for the higher-yielding central bank certificates of deposit, prompting rates to drop. The rates have been hovering just above 8.75 percent for the past month.
The central bank keeps its key interest rates within a corridor of 8.75 percent for borrowing and 10.75 percent for lending. One trader said there was speculation in the market that the central bank could drop the corridor by one quarter of a percentage point.
Three out of 12 banks contacted by Reuters reported overnight deals between 8.755 percent and 8.76 percent, the same as on Wednesday.
One bank reported dealing in one-week money at 8.755 percent and another reported dealing at 8.76 percent.
By 2 pm, the Egyptian pound had slightly strengthened to LE 5.6969 to the dollar, compared to Wednesday s closing weighted average of 5.6970.
