CAIRO, Dec 24 (Reuters) - Egypt's central bank, responding to what it said were market rumours, said on Monday that it was taking all steps needed to safeguard deposits in Egyptian banks whether denominated in local or foreign currencies.

"The Central Bank of Egypt is taking all necessary steps and measures to preserve the stability and security of the banking sector in Egypt and depositor funds," the bank said in an emailed statement.

The bank said it was responding to public rumours. Some Egyptians have said recently they had withdrawn their funds from banks out of concern they would be frozen by the authorities.