Egypt has officially renounced the use of the US Dollar in trade, aligning with the BRICS de-dollarization strategy. Joining the alliance alongside four other nations at its 2023 summit, Egypt has fully committed to conducting commerce in its local currency.
The BRICS expansion, the first since 2001, holds significant geopolitical implications. Egypt, Iran, Saudi Arabia, the United Arab Emirates (UAE), and Ethiopia are expected to become members, with Egypt signaling its intention to move away from the dollar in trade.
Throughout the past year, BRICS has garnered attention for its efforts to reduce the dominance of the US dollar internationally and expand its membership. Egypt’s decision this week aligns with these goals.
The Ministry of Foreign Affairs announced Egypt’s intention to advocate for trading in national currencies to mitigate the rising costs associated with foreign currency settlements. This decision reflects a global economic shift, influenced by recent international crises.
Similar to other BRICS nations, Egypt is motivated by concerns over potential Western sanctions, as seen in the case of Russia, and the uncertainties surrounding the US economy and its mounting debt.
Transitioning to local currency reliance is viewed as the most prudent path for emerging economies and global economic stability.
