Egypt: IMF agreement and currency devaluation reduce risk of crisis
-
The CBE hiked its policy rate by 200bps and devalued the EGP by 13.75% today, and the IMF announced a US$3bn EFF
-
Deval likely enough to clear market but TBD if CBE will stay committed to flexibility moving forward, which is essential
-
Risk of crisis reduced for now; retain Buy on eurobonds and upgrade from Sell to Buy on 12m T-bills hedged with 12m NDFs
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.