CAIRO: The median overnight interbank rate on Egypt s pound edged up slightly to 8.8 percent on Thursday from 8.788 percent on Wednesday, but traders said the market was still liquid in the absence of large auctions. It s the same liquidity as yesterday, one dealer said, explaining that there were no central bank auctions of certificates of deposit to drain liquidity. Auctions tend to push rates higher as banks shun interbank trade. The central bank pays 8.75 percent on overnight deposits and will lend overnight at 10.75 percent, in effect setting lower and upper limits for the overnight interbank market. Eight out of 10 banks contacted by Reuters reported dealing in overnight paper in brisk trade, at rates between 8.75 and 8.85 percent, compared to rates between 8.77 and 8.8 percent reported on Wednesday. By 0900 GMT, the pound had weakened to 5.6849 pounds to the dollar from Wednesday s closing weighted average of 5.6834 pounds.
