Egypt Investment Sentiment Turns On Interest Rate Hike, Devaluation, IMF Deal

Money managers who pulled some $20 billion from Egypt in a matter of months two years ago will now find few places in emerging markets more alluring.

The verdict of investors is in, after a day that saw Egypt devalue its currency by more than 38% following a record interest-rate hike of 600 basis points. The backstop of the International Monetary Fund’s expanded $8 billion loan — and the United Arab Emirates’ commitment of more than four times as much money — has flipped the script for some of the biggest names in finance like Aviva Investors and Vanguard Asset Services.