Cairo received a shot in the arm this week when the IMF agreed to release the second $1.25bn installment of a $12bn loan agreed last August.

Once approved by the IMF’s Executive Board, this would bring total disbursements to $4bn as part of the three-year extended fund facility (MEES, 19 August 2016). 

One of the conditions set by the IMF was the flotation of the Egypt pound, which had previously been pegged to the US dollar at $1=E£8.8. The currency has since more than...