Egypt pound o/n interbank rate slips to 8.77 pct
Published May 7th, 2007
The median overnight interbank rate on Egypt’s pound slipped to 8.77 percent on Monday from 8.788 percent CBET on Sunday in the absence of significant auctions for government paper, traders said.
“It’s still liquid, but tomorrow we expect it (liquidity) will go down because of auctions — either for deposits or CDs,” one dealer said, adding the market was expecting an auction for around 10 billion pounds ($1.76 billion) on Tuesday.
Interbank rates were also lower on Monday because it was the last day of a two-week central bank reserve calculation period, and some banks had already squared their positions in advance.
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.
The market has been hovering close to the lower end of the central bank corridor for several weeks in the absence of significant government auctions for popular certificates of deposit. Such auctions tend to lift the market higher.
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