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Wednesday, 10 August 2016

No devaluation timeline agreement, IMF might stay another week as Egypt chases after GCC deposits

The IMF delegation may stay another week to try and reach an agreement on a timeline for devaluation,according to a senior government official speaking to Youm7. The central bank has been insisting to the delegation that it already has a set timeline to devalue the EGP before the talks began, said the source, implying that the IMF might want the timeline moved forward. Talks aimed at having the Ismail government agree to cut fuel subsidies are also holding up an agreement, with Egyptian negotiators said to be trying to protect subsidies for the lowest income earners. The source added that the USD 2 bn decline in Egypt’s foreign reserves last month to USD 15.5 bn has put negotiators in a tight spot in the talks. We’re hoping the nice folks at the IMF are enjoying our hospitality and not feeling like this (watch, run time: 0:08).

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