CAIRO, (Reuters) - The median overnight interbank rate on Egypt's pound dipped to 11 percent on Monday, May 21, from 11-3/8 percent on Sunday in a liquid to moderate market, bankers said.
They said the lack of Central Bank dollar sales led to excess pound liquidity. "The Central Bank still hasn't sold any dollars and so banks don't need to buy pounds," said one banker.
"We need a dollar sale to absorb some of the pounds in the market," said another banker.
Ever since the Central Bank introduced a "managed peg" in January for the pound at around 3.85 per dollar, banks have relied heavily on Central Bank dollar sales to provide for their needs.
Three banks out of eight called by Reuters said they had not made any overnight loans.
Overnight rates ranged between 10-1/2 and 11-3/4 percent, down from 11 to 11-3/4 percent on Sunday.
Three banks gave one-week rates, which varied from 10 to 11-1/2 percent, versus Sunday's 10-1/2 to 11 percent.
The CAIBOR showed an overnight interbank rate of 11.2045 percent versus Sunday's 11.0477 percent.
The one-week rate was quoted at 10.9176 percent, compared to Sunday's rate of 10.9602 percent.
CAIBOR rates are compiled by Reuters using average rates offered by 28 banks.
($1=3.88 Egyptian pounds).
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