Seven Charts Show Egypt’s Debt Dilemma Ahead of Fed Tapering

Egypt’s reliance on foreign inflows has placed it among the emerging markets vulnerable to an investor exodus when the U.S. Federal Reserve begins tapering its pandemic stimulus -- but it’s better equipped than many to weather any volatility.

The Fed’s move is expected to spur interest-rate hikes in advanced economies, making them more competitive against Egypt’s high-yielding but higher-risk debt. That’s a challenge for the North African nation where record investments in T-bills and bonds have helped the economy withstand the pandemic.