The Central Bank of Egypt has allegedly proposed a three-stage devaluation timeline, with the first stage to occur “within days,” a government source tells Al Shorouk as talks with the IMF on a bailout package of as much as USD 12 bn continues. While the source refused to disclose details of the timeline, the process will eventually lead to a floating EGP, the newspaper suggests. The CBE is also in talks with the banking sector to set policies that guard against speculative hoarding of USD. These could come in the form of new restrictions such as further caps on USD withdrawals and more stringent monitoring of the issuance of letters of credit. Also possibly in the works: New incentives such as high-yield savings certificates, the source added.

The domestic press is also re-hashing the IMF’s point that the size of the facility is entirely depend on the progress Egypt makes on the reform agenda agreed upon during the negotiations. The IMF reportedly made the point at a meeting with Planning Minister Ashraf Al Araby, a source close to the talks tells Al Masry Al Youm.