The median overnight interbank rate on the Egyptian pound dipped to 10-1/2 percent on Sunday from 10-7/8 percent on Thursday in quiet trading as banks waited for results of a reverse repo auction, dealers said. Many banks preferred to place their funds in the latest 59-day offering for reverse repos, where they could secure rates of 11 percent or more rather than deal on the interbank market where rates were generally lower, they said. "The market is very quiet because the central bank announced a reverse repo auction for 59 days, and most banks are bidding in the auction because it pays higher than the market," said one of the dealers.
Four out of nine banks contacted by Reuters dealt in overnight money at rates of between 9-1/2 and 11-1/4 percent, compared with Thursday's range of 10-3/4 and 11-1/4 percent.
Three of the banks had dealt in one-week money, citing a range of 10-3/4 to 11-1/4 percent. On Thursday, two out of nine banks had dealt at 10-3/4 and 11 percent.
The overnight CAIBOR rate was down at 10.5833 percent compared to Thursday's 10.6071 percent, while the one-week CAIBOR slipped to 10.7887 from 10.8125 percent on Thursday.
The pound was quoted at 5.7937 to the dollar at 1000 GMT, fractionally weaker than Thursday's weighted average of 5.7935 to the greenback.
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