Egypt o/n interbank rate slips to 9-1/4 percent
CAIRO, (Reuters) - The median overnight interbank rate on Egypt's pound fell to 9-1/4 percent on Wednesday, May 23, from 10 percent on Tuesday in a liquid market, fuelled by a Central Bank repo this week and an end-week easing, bankers said.
"A repo on Sunday helped make the market liquid this week," one banker said.
Another banker attributed the drop to the effects of recent Central Bank regulations, such as removing reserve requirements on time deposits of more than three years, which freed up bank assets for other uses.
The banker played down the impact of delayed Central Bank dollar sales for the excess liquidity, saying that dollar shortages were not large enough to soak up the abundant supply of Egyptian pounds in the market, once a sale did take place.
Overnight rates ranged between eight and 10 percent, compared to nine and 11 percent on Tuesday.
One-week rates ranged between 8-1/2 and 9-1/2 percent, compared to 8-1/2 percent, quoted by only one bank out of seven polled by Reuters on Tuesday.
The showed an overnight interbank rate of 10.4667 percent compared to 11.0170 percent on Tuesday.
The one-week rate was quoted at 10.0881 percent versus 10.6702 percent on Tuesday.
CAIBOR rates are compiled by Reuters using average rates offered by 28 banks.
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