BNP Paribas: “A necessary but insufficient devaluation.” BNP Paribas’ Pascal Devaux writes in a recent research note that while “devaluation of the Egyptian pound is necessary, it is nonetheless a risky process for two reasons: the external accounts will continue to show a big deficit at least through 2018, and its potentially negative social consequences. The external financial support promised for this fall will have to be extended for at least the next two years.” The piece is well worth reading for its comparison of the impending devaluation to Egypt’s last two major rounds (earlier this year and in 2003) as well as Argentina. Tap here for the full note, but wait ‘til you’re at the office and do it on your PC / Mac: The link takes you to a summary, and you’ll need to scroll down and spawn the embedded PDF to view it. In other words: Not mobile friendly.

Meanwhile: The EGP weakened on the parallel market yesterday with greenbacks changing hands at EGP 15.65 to the USD, compared with EGP 15.40 Saturday, according to Al Mal. Al Borsa reported the rate unchanged at 15.40.