Egypt’s foreign reserves hit a record $42.5bn at the end of February (see chart). The latest contribution came from a $4bn Eurobond launched last month(MEES, 16 February).

Reserves have leapt since November 2016’s $12bn loan agreement and the subsequent flotation of the Egyptian pound. This led the currency to immediately halve in value but also led to a leap in inward investment. In December Cairo received a third $2bn tranche under the IMF deal, bringing total disbursements to...