Not so fast, says Amer: The central bank governor reportedly insisted at yesterday’s cabinet economic group meeting that there will be no devaluation at upcoming CBE auctions, government sources tell Al Masry Al Youm. The CBE kept the EGP stable at 8.78 to the USD in Tuesday’s regular auction meant to clear imports of basic food, selling USD 116 mn, Reuters reports. Amer’s remark suggests the CBE is hoping the IMF facility — which will take weeks to conclude before a first transfer is possible — will be part of a liquidity shield that might allow the bank to flood the market with liquidity ahead of any potential float.

The discussions comes as the EGP found (some) respite in the parallel market, strengthening to 12.80-12.90 to the USD, five traders told the wire service after quoting up to 13.10 a day earlier. Bloomberg reported 12.99 to the USD on Tuesday, based on an average of quotes from five currency traders in Cairo and Alexandria.

With the EGP’s downward spiral in recent weeks causing tremors, it was not surprising that rumors emerged that CBE Governor Tarek Amer had resigned. Amer denied the notion in remarks to Al Borsa. The governor has been widely blamed for the EGP’s slump after successive comments suggesting that defending the currency for the past five years has been a mistake and hinting further devaluation was in the cards.