The BRICS nations are looking to establish their own currency, in order to decrease the influence of the US in the global trade market by means of de-dollarization writes Watcher.Guru. New countries are already showing interest in joining the organization, including Egypt.
Will Egypt Join and Adapt BRICS Currency?
Egypt’s interest in the BRICS alliance has risen over the past two years. This is in part due to the speculations of a new currency. A gradual development of a non-dollar financial system, moving away from reliance on the US dollar, is something that the African nation is looking to do. Also, Egypt’s economy will benefit from the formation of reserves to solve liquidity problems. This formation will better cope with global crises through the economy of the member countries
Additionally, Egypt hopes to establish more trade with domestic currencies. This is something that has been heavily discussed by BRICS and will be discussed especially at the upcoming BRICS summit in August. Despite a deteriorating economy and weak sovereign currency, Egypt looks to be favoring the BRICS Alliance as a way to solve its monetary issues.
In March of this year, Cairo took an equity position within the New Development Bank (NDB). The NDB was developed by the BRICS alliance. This is the first surefire step in a nation joining BRICS. The UAE, Bangladesh, and Uruguay have also already done this as well.
Egypt participated in the BRICS Summits in 2017 and 2022. It will likely be involved in the upcoming one in South Africa as well. While more nations being officially brought into BRICS during the summit isn’t a guarantee, the topic of new members and a new currency will be a hot topic.