CAIRO: The median overnight interbank rate on the pound was 9 percent on Tuesday, barely changed from Monday 9.022 percent, with bankers shunning interbank trade in favor of central bank auctions. It s better for me to participate in the auctions, one banker said. Banks tend to prefer to invest in higher-yielding central bank instruments, either treasury bills or certificates of deposit, but revert to trade on the interbank market in the absence of fresh auctions. On Tuesday, the central bank held auctions for LE10.7 billion ($1.8 billion) worth of 7-day, 120-day and 274-day certificates of deposit. Several of the banks contacted said they had participated in the auctions and were awaiting the results. Four of 10 banks contacted by Reuters had dealt overnight at rates of 9 and 9.05 percent, compared with Monday s rates of 9 to 9.35 percent. None of the banks reported one-week deals, while on Monday three banks had reported one-week deals at rates of 9.3 and 9.35 percent. The pound strengthened slightly to LE 5.7362 against the dollar by 1 p.m. (10:00 GMT) from Monday s general weighted average of LE 5.7364. Reuters
Median interbank rate steady at 9 percent
