In a significant development, Egypt has decided to sever ties with the US dollar and adopt local currencies for trade with the BRICS economic bloc. Following the footsteps of other nations, Egypt’s move aligns with the ongoing de-dollarization efforts within the bloc.
According to Ali Moselhy, Egypt’s Supply Minister, the country will now conduct trade and pay for imports from China, Russia, and India using local currencies. While discussions are underway, a potential credit line with India is also being explored to facilitate trade in local currencies.
The rise of the BRICS bloc has reshaped the global power balance and emphasized the need for a multipolar financial system. Egypt’s decision to abandon the US dollar in its trade practices further contributes to the bloc’s de-dollarization initiatives. The move away from the dominant greenback, traditionally used for international trade settlements, signifies a significant shift in Egypt’s approach.
Moselhy highlighted that discussions are ongoing for trading in local currencies like India’s rupee, Russia’s ruble, or China’s yuan. This transition is expected to fuel the rapid economic growth of the BRICS bloc, which has already surpassed that of the G7 countries.
As the upcoming BRICS Summit in August approaches, it is likely to witness discussions on the implementation of a BRICS currency for international trade settlements. This alternative currency could potentially challenge the hegemony of the US dollar even further, amplifying the ongoing shift in global financial dynamics.