The underrated story of 2023

A fresh round of IMF bailouts is underway, and some of the world’s most indebted nations will have to sacrifice their currencies to get them.

The year has already seen three debt-laden countries — Egypt, Pakistan and Lebanon — drop their exchange rates to unlock International Monetary Fund assistance. That may be just the beginning. With at least two dozen nations queuing up before the Fund for rescue packages, currency traders are bracing for a potential fresh wave of devaluations in the developing world…

“Currency devaluation makes a number of equity markets in the smaller emerging and frontier universe untouchable,” Malik said, naming Argentina, Egypt, Ghana, Lebanon, Nigeria, Pakistan, Sri Lanka and Zimbabwe.

Here is more from Bloomberg.