The median overnight interbank rate on Egypt s pound dropped marginally at 8.76 percent on Thursday from 8.766 percent on Wednesday in a liquid market with the absence of certificates of deposit auctions.
The market is very liquid with the overnight interbank rate levels remaining at 8.76. The CDs are over already so that s why the market is liquid, one dealer said. Banks tend to revert to the interbank market when there are no significant auctions for the typically higher-yielding CDs that tend to absorb liquidity. The central bank keeps overnight interet rates within a corridor by offering to borrow at 8.75 percent and lend at 10.75 percent. Five out of 11 banks contacted by Reuters reported overnight deals at between 8.76 percent and 8.79 percent compared to between 8.75 percent and 8.78 percent on Wednesday. No banks reported dealing in one-week money. By 1000 GMT the Egyptian pound weakened to 5.6966 against the dollar, compared with Wednesday s closing weighted average of 5.6959.
