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Egypt: Ras el Hekma deal paves the way for policy shift

The $35bn deal struck between Egypt’s government and the Abu Dhabi sovereign wealth fund, ADQ, will go some way towards alleviating acute balance of payments strains and pave the way for an enhanced IMF deal to be signed off soon. A devaluation of the pound will still be needed, but the agreement has reduced the threat that the currency will significantly overshoot its fair value.

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