Sunday, July 21, 2024

Egypt has officially applied to join the BRICS group, with confirmation coming from Russia’s ambassador to the Arab nation. The government in Cairo is keen on utilizing alternative currencies for foreign trade, either through national fiat currencies or the introduction of a new common currency, as revealed by the diplomat.

Egypt’s Aspiration to Join BRICS Supported by Russia

According to Georgy Borisenko, the Russian Ambassador to Cairo, Egypt has formally expressed its interest in becoming a member of the BRICS group. In an interview with the Tass news agency, Borisenko explained:

“Egypt has submitted its application to join the BRICS group because one of the objectives pursued by BRICS is to transition trade to alternative currencies, whether they are national currencies or a newly established common currency. Egypt is highly interested in this endeavor.”

Borisenko also highlighted Egypt’s willingness to enhance trade and economic cooperation with the Russian Federation. He disclosed that new payment mechanisms are currently being developed to facilitate international trade transactions.

Established in 2006 as an alternative to the Group of Seven (G7), which consists of the most advanced economies, BRICS comprises five of the largest emerging economies: Brazil, Russia, India, China, and South Africa. According to a recent study, BRICS has become the world’s largest bloc in terms of global gross domestic product (GDP) share.

The foreign ministers of BRICS member countries met in Cape Town at the beginning of June to discuss the organization’s expansion. The meeting was also attended by high-ranking diplomats from 12 other countries, including Egypt, that are seeking to join the group. The establishment of an international reserve currency based on the currencies of the BRICS states is expected to be on the agenda for the BRICS summit in August.

While expressing support for Egypt’s application to join BRICS, Borisenko noted that the admission of new countries can only occur after the current members agree on the criteria and procedures for accepting new members, as there are still differing opinions on this matter.

The ambassador reminded that in 2021, Cairo was granted shareholder status in the New Development Bank (NDB) under BRICS, with Moscow’s support. In February 2023, Egyptian lawmakers hailed the parliament’s approval of an agreement allowing the country to join the NDB, citing the reduction of dependency on the U.S. dollar and the preservation of foreign currency reserves as benefits.

What are your thoughts on the potential acceptance of Egypt and other nations as members of BRICS in the near future? Share your opinions in the comments section below.

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