The USD-EGP weakened on Wednesday, with banks selling the USD for between EGP16.1-16.2, up from cEGP15.8 one day earlier. Meanwhile, importers said dollars are currently traded at EGP17.0-17.5 in the black market, compared to EGP16.5 in mid-February. The weakening of the USD-EGP in the official market comes in line with our expectations as foreign currency flows into the banking sector normalise post a strong rally at a time when demand starts picking up as the currency strengthens as well as due to seasonality. The weakening also came after the CBE had settled open position for small and medium enterprises, yesterday. We maintain our expectation of the USD-EGP trading in a range of EGP16-17 throughout 2017 with upside risks including a recovery in tourism and more portfolio inflows coming through the repatriation mechanism.