Egypt and the IMF: still no breakthrough

Political deadlock in Egypt has placed another obstacle in the way of negotiations with the IMF. A team from the Fund left Cairo earlier this month without an agreement in place, apparently as a result of the lack of political consensus for reforms. With parliamentary elections unlikely before the autumn (no date has been set yet), a deal with the Fund still seems some way off. In the meantime, tightening restrictions on access to foreign currency have led to shortages of staple goods, rising inflation and disruptions to activity. All told, it looks like the country is in for a very bumpy ride over the next six months or so.