Egypt now seeks to use local currencies to pay for its imports from India, China, and Russia – key members of the BRICS
The call to ditch dollars in settling overseas trade has been getting louder with more countries joining the league. Egypt has become the latest entrant to shed the US currency in trade with several member states of the BRICS economic bloc.
Egypt now seeks to use local currencies to pay for its imports from India, China, and Russia – key members of the BRICS. Brazil and South Africa are also the members of this group.
“Nothing of the sort has been implemented but there are discussions so that we can trade in local currencies of countries like India, Russia or China,” Egyptian Supply Minister Ali Moselhy was quoted as saying by Reuters.
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The BRICS nations make up 40 per cent of the world’s population and almost a third of the global economy. The members of the group have recently outpaced the G7 in terms of economic growth.
In April this year, 19 countries expressed interest in joining BRICS, which is considering an alternative to the US dollar. The group which is scheduled to hold its 15th annual summit in South Africa over August 22-24 are also mulling creating a new currency to facilitate trade.
The countries that have formally requested BRICS membership include the United Arab Emirates, Argentina, Algeria, Egypt, Bahrain, Indonesia, Saudi Arabia and Iran.
Currently, Egypt is trying to buoy its struggling economy, which has been facing the wrath of steep decline in revenues from tourism and surging commodity prices.
Geopolitical tensions have also impacted Egypt’s financial markets with foreign investors pulling out about $20 billion over the recent past.
Last year, Egypt witnessed a sharp surge in inflation following several waves of currency devaluations, a prolonged shortage of foreign currency, and continuing delays in procuring imports.
Recently, Egypt has agreed on a $3 billion deal with the International Monetary Fund (IMF). The country’s Gulf allies have also pledged to come to its aid with billions in investments.
Updated Date: June 13, 2023 18:16:45 IST
