JPMorgan will remove Egypt from its local-currency bond indexes, tracked by emerging market funds worth over USD 200 bln. The exclusion from the GBI-EM will occur on January 31, while removal from the ELMI+ indexes will happen on March 29. Egypt, with a 0.6% weight in the GBI-EM, faces increased pressure to address its FX shortages. The exclusion could limit Egypt’s recovery in portfolio inflow, even after potential currency devaluation or expansion of its IMF program, raising external funding challenges.