Egypt interbank rate dips

27 Sep, 2004

The median overnight interbank rate on the Egyptian pound fell to 12 percent on Sunday from 13-1/4 percent on Thursday after most banks squared their positions for the end of the period for calculating reserve requirements, traders said.
Rates usually fall more sharply at the end of the two-week period on Monday but interbank rates have been especially high for the past few weeks because the central bank has been withdrawing money through public-sector banks, they added.
Six out of 11 banks contacted by Reuters had dealt in overnight money, citing a range of 11-1/2 to 13 percent, compared to a range of 12-1/2 to 14-1/4 percent on Thursday.
Two of the eight banks had dealt in one-week money, at rates between 12 and 13 percent. Last Wednesday one-week rates ranged between 11-3/4 and 13-1/2 percent. On Thursday, no banks which were contacted quoted one-week rates.
The overnight CAIBOR rate rose to 11.0333 percent from 10.8881 percent on Thursday and one-week CAIBOR went up to 11.4881 from 11.3929 percent.
In the official foreign exchange market, the pound was last quoted at a mid-rate of 6.25 to the dollar in banks and 6.24 at exchange houses, compared with Thursday's weighted average of 6.23 pounds.
Market sources said the pound appeared to have strengthened on the black market, to between 6.28 and 6.30 pounds to the dollar. The pound had recently weakened to above 6.35 after the government slashed customs tariffs, stimulating demand for imports.

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