Egypt has filed an application to join the BRICS bloc, Russia’s ambassador to the Arab nation confirmed. The government in Cairo is interested in using alternative currencies in foreign trade, either national fiats or a new common currency, the diplomat unveiled.
Egypt Takes Step to Join BRICS Club, Russia Backs Bid
Egypt has applied to become a member of the BRICS bloc of nations, according to the Russian Ambassador to Cairo, Georgy Borisenko. In an interview with the Tass news agency, the diplomat explained:
Egypt has submitted its application to join the BRICS group because one of the endeavors that BRICS is currently pursuing is to shift trade to alternative currencies, be it national currencies or a new common currency. Egypt is very much interested in that.
Borisenko also pointed out that Egypt is willing to boost trade and economic cooperation with the Russian Federation. He revealed that new payment mechanisms are currently being developed to facilitate international trade transactions.
BRICS, which unites five of the largest emerging economies (Brazil, Russia, India, China, and South Africa), was formed in 2006 as an alternative to the Group of Seven (G7) format comprising the most advanced economies. It has already become the world’s largest bloc by share of global gross domestic product (GDP), according to a study released earlier this year.
The foreign ministers of the BRICS members met in Cape Town in early June and discussed the organization’s enlargement. The meeting was also attended by top diplomats from the 12 other countries that want to join the group, including Egypt. The launch of an international reserve currency based on the currencies of the BRICS states is likely to be on the agenda of the BRICS summit in August.
Speaking to RIA Novosti, Borisenko emphasized that Russia supports Egypt’s bid to join BRICS but noted that this can happen only after the criteria and procedures for admitting new countries are agreed upon by the current members which still have different opinions on this matter.
The ambassador reminded that in 2021, Cairo was accepted as a shareholder of the New Development Bank (NDB) under BRICS, again with Moscow’s backing. In February 2023, Egyptian lawmakers hailed the parliament’s endorsement of a pact allowing the country to join the NDB, stating that the move will reduce its demand for U.S. dollars and enable it to preserve its foreign currency reserves.
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