CAIRO: The median overnight interbank rate on Egypt s pound was nearly unchanged at 8.76 percent on Sunday from Thursday s 8.763 percent, with the market liquid in the absence of large government auctions, dealers said. They said a decision by the central bank on Friday to keep its overnight corridor rates unchanged at 8.75 percent for deposits and 10.75 percent for lending to banks had little effect on the market. The decision wouldn t make a difference. We are waiting for an adjustment of the tools they use, one dealer said, adding he was hoping Egypt would allow banks to use deposits auctions in calculating liquidity ratios. Meanwhile, an absence of central bank auctions for either deposits or certificates of deposit was keeping the interbank market liquid and rates down, traders said. Overnight interbank rates have been hovering for weeks just above 8.75 percent, the lower limit of the central bank s corridor. The central bank said on Friday it was keeping its corridor rates steady due to declining inflation figures, adding that it believed inflation had peaked. Five out of 10 banks contacted by Reuters reported dealing in overnight paper at rates between 8.76 and 8.8 percent, compared to a range of 8.75 to 8.77 percent on Thursday. Four banks reported dealing in one-week money at 8.8 percent, while a fifth had dealt in 9-day money at rates of 8.79 and 8.8 percent. By 10 am GMT, the Egyptian pound had weakened to LE 5.6937 to the dollar from Thursday s closing weighted average of LE 5.6924.
