The foreign press is still speculating about the likelihood that we will see another devaluation of the EGP. Twelve-month non-deliverable forwards hit EGP 42.80 to the USD on Thursday, according to Bloomberg. The official rate has remained at 30.94 for more than a month. The recent drop in non-deliverable forwards for the EGP indicates growing market speculation that the CBE will have to devalue the currency for a fourth time in the coming weeks, the business news outlet says, citing Societe Generale EM strategist Gergely Urmossy. “There is consensus among market players — including myself — that the EGP will be devalued,” said Urmossy, adding that “the longer authorities wait with devaluation, the greater the magnitude could be.”

Investors in our USD bonds are looking for higher yields: The spread between Egyptian USD bonds and treasuries stood at 1.2k bps on Thursday — only 54 bps lower than the July record high, Bloomberg says, citing data from JPMorgan.

AND- Bloomberg’s Bobby Ghosh has opinions on the political challenges posed by high inflation.

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