Pre-Trading Thoughts

The government successfully sold 10% of its stake in Telecom Egypt, raising almost EGP3.95 billion. We expect April’s urban inflation reading to give the CBE a chance to keep rates on hold at its next meeting and assess the impact of the latest 500 bps hikes. The market is now expecting the CBE to postpone further EGP depreciation until after it secures foreign currency inflows to avoid exchange rate overshooting. One-month NDF for the USD-EGP rate is currently around 32.90, from a record hig...