There’s plenty of mentions for Egypt in the business pages this morning as the foreign press speculates about the likelihood of a fourth devaluation.

Further signs that a fourth devaluation is in the offing: CIB’s depository receipts onthe London Stock Exchange are trading at their highest discount to the bank’s EGX-listed shares since August 2016 — another sign that markets are pricing in a fourth currency devaluation, Bloomberg reports. The bank’s GDRs closed 29% below its share price on the EGX yesterday, reflecting building pressure on the EGP amid a continued shortage of foreign currency. “The unwillingness to move to a fully flexible currency means another chunky devaluation is coming,” Bloomberg quotes Tellimer strategist Hasnain Malik as saying.

EGP falls further in the derivatives markets: Twelve-month non-deliverable forwards this week have the EGP hitting 41.60 to the USD, up from EGP 41.00 last week, according to Bloomberg. Meanwhile, Al Arabiya reports that the USD is currently trading at 35.40 in the parallel market. The official rate has remained at 30.96 for more than a month.

Egypt’s USD bonds fall sharply: Egypt’s USD-denominated bonds, including the benchmark issue due to mature in 2025, fell more than 2.2 cents in trading yesterday, Reuters reports, citing Tradeweb data.

AND- Some business leaders are voicing skepticism about the government’s plans to reduce its economic footprint. (Associated Press)

Tags: