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Tuesday, 8 November 2016

Period of volatility and overshooting expected -Pharos Holding

“This is the right step, it was long awaited by all market participants,” head of Research at Pharos Holding Radwa El Swaify told Bloomberg TV (watch, run time: 2:07), commenting on the EGP float. “All the steps on the agenda were much needed in terms of building net international reserves, trimming the budget deficit, and monetary policy adjustment,” she adds. The CBE has made it clear from its announcements that that the next step is left to the interbank and market supply and demand, El Swaify says. She agrees with RenCap’s Ahmed Badr’s remarks that there will be an expected period of volatility and overshooting as market participants test their boundaries to understand the backlog of demand clearance rate.

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