Egypt has returned to the IMF’s good books, for now at least. Energy subsidies are falling and reserves are at record levels.

Egypt’s freshly-released budget plan for the upcoming 2018-19 financial year (beginning 1 July) envisages cutting spending on energy subsidies to E£105.1bn. This equates to $6.1bn based on the budget document’s official exchange rate of $1= E£17.25 (which looks ambitious given that it implies a 2.5% appreciation from the latest market...