The Clap An announcement regarding an IMF loan agreement could be close by, according to sources.
The Deets While nothing is certain yet, sources expect the loan to “come within hours”, & range between $3-5 billion.
Backstory Egypt has been in talks with the IMF for months now over a loan, as the Russian war in Ukraine took a heavy toll on the Egyptian economy.
Why this Matters Egyptian stocks tend to have an inverse relationship with the Egyptian pound; as the latter falls against the US Dollar, Egyptian equities tend to jump.
The loan would also allow Egypt to resume the issuance of international bonds.
Now What Assuming Egypt does receive the loan, it must stick to the IMF’s reform program, one of them being a revised exchange rate, so it doesn’t find itself in a similar position needing to borrow under pressure.
Egypt’s government has also announced it would gradually exit some sectors to allow for more private sector participation.