Egypt has created a “well-functioning" currency market, which is reflected in the EGP’s current rate, the IMF said, adding that the currency may strengthen after a period of adjustment since last year’s float. The EGP is trading at a “genuine equilibrium exchange rate, in the sense that as many people want to sell foreign exchange as buy foreign exchange," said Chris Jarvis, the IMF’s mission chief to Egypt, after the fund released details of the USD12bn loan to the country. There may have been some “overshooting” with the EGP, which is now trading weaker than the IMF’s initial expectations and where it may eventually be valued. “That’s our current expectation,” he said. "The exchange rate is more depreciated than we expected given the fundamentals."  (Bloomberg, Reuters)