Interbank rate rises to 8.3 percent

Daily Star Egypt Staff
1 Min Read

CAIRO: The median overnight interbank rate on the pound jumped to 8.3 percent on Tuesday, from 8.083 percent on Monday after a central bank auction drew liquidity from the market, traders said. The central bank auctioned 7-day certificates of deposits worth LE 8 billion ($1.4 billion). Few banks traded between themselves, preferring to enter the auction to benefit from higher rates, bankers said. The market s a little bit short today, mainly because of the central bank auction, said a trader who declined to be named. Only three of the 12 banks contacted by Reuters had dealt overnight, at rates between 8.25 and 8.45 percent. Overnight rates at banks contacted on Monday were 8.05 or 8.1 percent. The central bank sets a corridor for overnight interbank rates by offering to borrow funds from banks at 8 percent and lend to them at 10 percent. As on Monday, none of the banks contacted had dealt one-week money. By 10:00 GMT, the pound had strengthened marginally to LE 5.7590 to the dollar from Monday s general weighted average of LE 5.7596. Reuters

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