Egypt Joins BRICS Bloc In De-Dollarization Efforts
Egypt has joined the growing trend of de-dollarization within the BRICS economic bloc, according to the country’s Supply Minister, Ali Moselhy. Egypt plans to bond the US dollar in its trade with the bloc, which includes Brazil, Russia, India, China, and South Africa. This move aligns with the efforts of other countries that have been working towards reducing their reliance on the US dollar in international trade settlements.
JUST IN: 🇪🇬 Egypt to settle trade with China, Russia, and India in local currencies, ditching the US dollar.
— Watcher.Guru (@WatcherGuru) June 13, 2023
BRICS De-Dollarization
Moselhy revealed to Reuters that Egypt will now pay for imports from India, Russia, and China in their respective local currencies. Additionally, discussions are underway regarding the possibility of establishing a credit line with India to facilitate trade in local currencies.
The BRICS economic bloc has been gaining prominence and reshaping the global power balance. It has been driving efforts towards de-dollarization, aiming to create a more diversified and multipolar global financial system.
Egypt’s decision to abandon the US dollar in its trade with the BRICS bloc marks a significant shift away from the greenback, which has traditionally been the dominant currency for international trade settlements. Moselhy stated that while no concrete implementation has taken place yet, discussions are ongoing to enable trade in the local currencies of countries like India, Russia, and China.
Implications of BRICS De-Dollarization
This move is expected to further fuel the rapid economic growth of the BRICS bloc, which has already outpaced the G7 countries. The upcoming BRICS Summit in August is likely to address the implementation of a BRICS currency for international trade settlements, potentially challenging the dominant position of the US dollar even further.
As more countries explore alternatives to the US dollar for international transactions, the global financial landscape is undergoing a transformation. The outcome of these de-dollarization efforts within the BRICS bloc and beyond will have far-reaching implications for the future of international trade and the role of the US dollar as the world’s reserve currency.
