{"id":589293,"date":"2023-06-25T00:00:00","date_gmt":"2023-06-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/25\/msci-could-review-our-emerging-market-status-amid-fx-crunch\/"},"modified":"2023-06-25T00:00:00","modified_gmt":"2023-06-25T00:00:00","slug":"msci-could-review-our-emerging-market-status-amid-fx-crunch","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/25\/msci-could-review-our-emerging-market-status-amid-fx-crunch\/","title":{"rendered":"MSCI could review our emerging-market status amid FX crunch"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"\"> <\/span><span style=\"font-weight:700\">MSCI could consider reclassifying Egyptian indexes amid the FX crunch: <\/span><span style=\"\">MSCI<\/span><span> has said it could launch a consultation to reclassify its Egyptian indexes from \u201cemerging\u201d to \u201cfrontier\u201d or \u201cstandalone\u201d status \u201cin the event of further deterioration of market accessibility in Egypt,\u201d according to its annual <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/ent.news\/2023\/6\/1203.pdf\" style=\"\">Market Classification Review (pdf)<\/a><\/span><span style=\"font-weight:400;\">. The global index provider said that a shortage of hard currency is \u201caffecting foreign investors\u2019 ability to repatriate capital in a timely manner,\u201d making our markets less accessible to investors abroad. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">What\u2019s the difference? <\/span><span>MSCI <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.msci.com\/our-solutions\/indexes\/market-classification\" style=\"\">groups the markets<\/a><\/span><span style=\"font-weight:400;\">it tracks into three main groups \u2014 developed, emerging, and frontier \u2014 according to \u201ccommon characteristics\u201d that \u201chelp investors better understand and compare\u201d different markets and assess the risk level associated with investing in them. We\u2019re currently considered an emerging market alongside countries like Saudi Arabia, Qatar, Turkey, and the UAE, meaning Egyptian equities are included in the MSCI Emerging Markets Index. Frontier markets in the region include Jordan, Morocco, and Tunisia. Standalone markets are either newly eligible for classification or have experienced \u201csevere deterioration in market accessibility or size and liquidity\u201d.\u2014 as in the case of Lebanon, for example. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">REMEMBER- <\/span><span>MSCI in May chose to <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.reuters.com\/markets\/msci-announces-quarterly-index-changes-2023-05-11\/\" style=\"\">make no<\/a><\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.reuters.com\/markets\/msci-announces-quarterly-index-changes-2023-05-11\/\" style=\"\">changes<\/a><\/span><span>to securities classified in Egypt in its quarterly review, saying it could give the country \u201c<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/website.enterpriselive.projectsarea.com\/news\/story?storyId=f65e17df-191a-4a65-8e76-6e305f04da9c\" style=\"\">special treatment<\/a><\/span><span style=\"font-weight:400;\">\u201d in the wake of investor concerns over Egypt\u2019s limited FX liquidity. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">It\u2019s not just us: <\/span><span style=\"font-weight:400;\">\u201cThe challenging global macroeconomic environment\u201d means that \u201cvarious markets\u201d are seeing low FX liquidity, \u201cposing obstacles to the ease of fund repatriation for international institutional investors,\u201d said Dr. Dimitris Melas, global head of index research and product development and chairman of the MSCI Index Policy Committee. The indexer is also monitoring how liquidity issues are impacting investors in Bangladesh, Kenya, and Sri Lanka, and is continuing a review into whether to reclassify Nigerian equities from a \u201cfrontier\u201d to a \u201cstandalone\u201d market. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MSCI says low FX liquidity is impacting the accessibility of the Egyptian market<\/p>\n","protected":false},"author":1,"featured_media":589294,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7303],"tags":[102,115,72,164,118],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-589293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capital-markets","tag-capital-markets","tag-emerging-markets","tag-enterpriseam","tag-equities","tag-msci","wpautop","entry"],"acf":{"mongo_id":"0ea527f8-6e24-42e8-9668-834b635ac55f","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/6\/1223.jpg","photo_position":"above","homepage_title":"","full_issue_title":"MSCI review Egypt\u2019s emerging-market status amid FX crunch","related_issue":[589284],"teaser":"MSCI says low FX liquidity is impacting the accessibility of the Egyptian market","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/6\/.2177f277-39e9-4690-9d6b-e30d5232a08a.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>MSCI could review our emerging-market status amid FX crunch - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2023\/06\/25\/msci-could-review-our-emerging-market-status-amid-fx-crunch\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MSCI could review our 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