Egypt Is Set to Return as an Emerging-Market Favorite

Egypt is set for a return as an emerging-market darling for overseas debt investors, as the North African nation went from the brink of economic disaster to unlocking more than $50 billion of financing in the last two weeks.

On Wednesday, the central bank enacted a long-awaited currency flotation, allowing the Egyptian pound to lose more than 38% of its value against the dollar. The regulator also carried out its biggest-ever interest rate hike of 600 basis points. Within hours, the government announced an agreement with the International Monetary Fund on more than doubling its loan to $8 billion.