The EGP devaluation is broadly credit positive, but Egypt continues to face “a difficult year of slower growth, high inflation and large financing needs,” Fitch Ratings said. Nevertheless, the changes the Central Bank of Egypt implemented are expected to have fiscal implications in higher government borrowing costs. Fitch forecasts a further exchange rate weakness to over EGP 9 against USD in 2016 and believes that, if FX constraints still persist, Egypt could turn to the IMF and believes “an IMF programme is within reach if required by the authorities.” It says that what the CBE means by its adoption of a “more flexible exchange-rate policy” remains unclear and expect upward pressure on prices, particularly if VAT is implemented this year. (Fitch Ratings)