Gbolahan Taiwao at JPMorgan expressed optimism in a note to clients, stating, “The Egypt carry trade is back in focus, and this time should be different.”
The firm also shared that it expects Egypt and the International Monetary Fund (IMF) will finalize a new agreement for its $3 billion loan during the first half of 2024, leading to an adjustment of the EGP and tightening of monetary policy
Egypt holds roughly 0.6% in the GBI-EM Global Diversified Index as of December 26 2023, with 13 EGP-denominated bonds included in the index with maturity dates stretching from 2024 to 2030
Egypt is expected to enter the index with 14 bonds, an estimated weight of 1.8%, valued at $26 billion, slightly higher than the estimated $24 billion announced back in October
Egypt will be returning to the index after being delisted from the index in 2011, with the government working towards its comeback over the last 3 years
