Egypt's partnership with BRICS boosts the value of local currency: Expert
Leaders and heads of emerging economic powers are participating to discuss prospects for international cooperation and formulate a vision that reflects the aspirations of a multipolar world.
Twenty countries have joined this year's BRICS Summit, including permanent members and partners within the group. The summit is scheduled to last two days, featuring a packed program including plenary sessions and bilateral and multilateral meetings.
Discussions during the BRICS 2025 Summit will focus on strengthening South-South cooperation, amid ongoing efforts to consolidate BRICS' position on the international stage.
Key topics include global economic governance, innovation and technology, sustainable development, climate change, and international peace and security issues, alongside specialized official sessions.
This seventeenth edition of the BRICS Summit is being held under special circumstances – the group faces a host of challenges, both internally and externally, testing its ability to achieve its ambitions.
Member states are seeking to expand cooperation in key areas such as health, technology, and the environment.
This summit is gaining increasing importance as countries of the Global South seek to reshape the existing global order and reduce their reliance on traditional Western economic and political systems.
It also pushes for enhanced trade using local currencies and expanded economic partnerships among member states, as part of a strategic drive toward building a multi-polar world order.
Brazil assumed the presidency of the group in early January, for the fourth time in its history.
Economic gains
Economic expert Samir Raouf, said that the 17th BRICS Summit offers Egypt significant economic gains by enhancing trade and investment through increased trade volume with BRICS countries.
He explained that trade volume between Egypt and BRICS countries has already increased by 19.5 percent in 2024 – reaching US$50.8 billion – with the opening of new markets for Egyptian products in these countries, especially after the increase in the number of members including from China, Russia, and India.
Raouf added that increased cooperation with strong economies within the group has led to an influx of additional foreign investment into the Egyptian market, alongside opening up new areas of cooperation in the technology, innovation, industrial development, energy, and food agriculture sectors.
This coincides with the possibility of implementing trade exchange systems in local currencies, which will help alleviate pressure on the dollar, reduce dependence on it, and gradually support the Egyptian pound.
The economic expert explained that Egypt is now able to benefit greatly from the collective efforts of the BRICS countries to establish an alternative global financial system based on non-dollar payment systems and multiple economic instruments.
In the future, this could lead to an improvement in the value of the local currency and increase Egypt's flexibility in making economic decisions outside the pressures of the traditional financial system.
Regarding financing development projects, Raouf explained that Egypt's membership in the BRICS New Development Bank provides it with concessional financing for infrastructure and sustainable development projects, particularly regarding transportation, energy, water, digital infrastructure, and social development.
As for tourism, the expert pointed out that the current stable situation in Egypt and the approaching opening of the Grand Egyptian Museum provide it with ample opportunities to promote tourism within the BRICS countries and increase the flow of tourist delegations from these countries.
Raouf concluded his remarks stating that Egypt's participation in the 17th BRICS Summit also brings significant strategic and geopolitical gains, as it strengthens its regional and international role as an active player in international forums, contributes to building a more balanced and just global economic system, and provides it with political and marketing support internationally on several issues.
Edited translation from Al-Masry Al-Youm
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