Egypt eyes JPMorgan GBI-EM relisting

Egypt is intensifying efforts to rejoin JPMorgan Chase & Co.’s Government Bond Index-Emerging Markets (GBI-EM), a key benchmark for over $200 billion in emerging-market funds, according to sources.

Egypt was removed from the index in January 2024 due to a foreign exchange (FX) crisis, barring re-entry consideration for 12 months. Re-inclusion may be discussed in mid-2025, but a decision is more likely in 2026.

Since its removal, Egypt has received a $57 billion global bailout, led by the UAE and IMF, and allowed its currency to devalue, boosting investor confidence. Interest rates were raised to 27.25 per cent, and foreign portfolio inflows have returned, mainly into short-term Treasury bills. Investors are lobbying for Egypt’s return to the index, but JPMorgan remains cautious after delisting Egypt twice in the past decade.

A relisting could attract long-term investment, as demonstrated by India’s recent bond market success after its inclusion in JPMorgan’s index.

Attribution: Bloomberg

Subediting: Y.Yasser