CAIRO: The median overnight interbank rate on the pound was stable at 8.50 percent on Wednesday, virtually unchanged from Tuesday s 8.506 with the market quiet as traders awaited the results of central bank auctions. The market is quieter today, but everyone is waiting to see the results of the auctions, one dealer said. I think the market will continue to be a little bit higher for the next couple of days. The central bank was holding auctions for a total LE 6.4 billion worth of 57-day, 126-day and 280-day certificates. 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. Five out of 10 banks contacted by Reuters had dealt overnight money at rates between 8.4 and 8.65 percent, compared with a reported range of 8.5 to 8.7 percent on Tuesday. Three banks reporting dealing in one-week money, at rates between 8.6 and 8.7 percent, compared with rates of 8.65 and 8.8 percent on Tuesday. The central bank effectively controls the range of overnight rates by offering 8 percent on overnight deposits and lending at 10 percent. By 10:00 GMT, the pound had strengthened to LE 5.7396 to the dollar, compared with Tuesday s closing weighted average of LE 5.7403. Reuters
