Egypt Drops Dollar for Local Currencies in BRICS Trade
Egypt plans to trade in local currencies with BRICS, moving away from USD
Egypt's Supply Minister, Ali Moselhy, revealed the nation's plan to utilize local currencies in trading with the BRICS economic bloc, transitioning away from the US dollar. This decision resonates with several other countries' de-dollarization actions and supports the bloc's increasing efforts for a more diversified global finance system.
Moselhy mentioned that Egypt would pay for imports from India, Russia, and China in respective national currencies. In his dialogue with Reuters, he suggested ongoing discussions regarding trade in local currencies, but noted that "nothing of the sort has been implemented."
With the growing influence of the BRICS bloc realigning global power dynamics, Egypt's shift from the dollar is another step towards currency diversification in international trade. It may further propel the economic growth of BRICS, which already surpasses that of G7 countries.
The upcoming BRICS Summit, scheduled for August, is expected to consider a BRICS-centric currency for international trade settlements, posing another potential challenge to the standing of the US dollar.
