Egypt foreign exchange reserves down $10b

The country's debt auctions are regularly undersubscribed, demonstrators have been back on the streets and, to make matters worse, the prime minister has been taken to hospital suffering from exhaustion. In addition, many remain concerned that Cairo has turned down a $3 billion International Monetary Fund support package in favour of promises of aid from Arab countries.

However, some think that, economically, the worst may be behind the Arab world's largest state.

Exotix, the emerging market specialist, says there are no "funding cliffs" ahead and that Egypt's banking system can meet the government's borrowing requirements.

"I would expect a lot of bumps along the way but ... they [the banks] can go on buying T-bills — it's not really a problem at all," says Gabriel Sterne, Exotix economist. "The banking system is very rigid ... The rigidities work in favour in these times."