This comes as foreign inflows have continued to gain steam since the EGP float, with foreign holdings of T-bills growing to USD 1.53 bn in January, up from USD 552 mn in December, and from USD 111 mn, the CBE said, according to Al Borsa. This is the highest level it has been since 2011, according to a CBE statement picked by Al Shorouk. “Investors were testing the waters in November and December with small investments. Now we’re seeing relatively bigger tickets,” EFG Hermes’ Mohamed Abu Basha tells Bloomberg, which notes that “remittances from Egyptians working abroad are surging and foreigners bought more than USD 250 mn in local assets on Sunday alone.” Foreign holdings in Egyptian debt remain very low, suggesting there is “plenty of potential for more inflows,” Abu Basha said. This confidence was heightened by the successful USD 4 bn eurobond issue and comes as Egypt’s FX reserves can now cover 5.7 months’ worth of imports after rising USD 2.1 bn to USD 26.4 bn in January, Central Bank Assistant Sub-Governor Rami Aboul Naga said on Tuesday.

On a related note, Aboul Naga told Reuters that Egypt has paid its USD 630 mn financial obligation in January to Eni to develop the Zohr. This should put a dent in the USD 3.5 bn in arrears owed to foreign IOCs.