Egypt: Downgrade local debt to Sell amid devaluation concerns
-
There is a growing consensus that the EGP is overvalued and further depreciation is necessary to reduce BOP imbalances
-
Resignation of CBE governor could signal policy shift, but today's decision to hold rates will keep pressure on EGP
-
Overvalued currency and low real yields, and EGP-US$ yield differential make local debt unattractive; downgrade to Sell
You can read this report by subscribing to a Starter or Pro plan today.
Already have an account? Log in
Most Read
Disclosures
This report is independent investment research as contemplated by COBS 12.2 of the FCA Handbook and is a research recommendation under COBS 12.4 of the FCA Handbook. Where it is not technically a research recommendation because the subject of the research is not listed on any European exchange, it has nevertheless been treated as a research recommendation to ensure consistent treatment of all Tellimer's research. This report has been produced by the analyst(s) named above (the "Analyst").
The Analyst certifies that the views and forecasts expressed in this report accurately reflect their personal views about the subject, securities, or issuers specified herein. In addition, the Analyst certifies that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report.