Egypt Applies to Join BRICS Bloc to Enhance Trade and Economic Cooperation
Egypt has officially applied to join the BRICS bloc of emerging economies, comprising Brazil, Russia, India, China, and South Africa. The application was confirmed by Georgy Borizenko, the Russian ambassador to Cairo, who stated that Egypt is interested in the maximum transfer of trade to alternative currencies. This includes the creation of joint currencies or the use of national currencies. Egypt’s request to join BRICS comes after it joined the BRICS New Development Bank in February. The bank could help boost the country’s infrastructure and solve its ongoing economic crisis. In June, Egyptian Supply Minister Ali Moselhy said that the country is planning to pay for imports from India, China, and Russia in their local currencies instead of the US dollar.
Boosting Ties with Russia
Borizenko also added that Egypt wants to boost ties with Russia. New payment mechanisms are being created for trade transactions. The confirmation regarding Egypt’s request to join BRICS comes a few days after the foreign ministers of member states held a meeting in Cape Town, which also witnessed the attendance of diplomats from other countries, including Egypt, Iran, Saudi Arabia, and the UAE.
Benefits of Joining BRICS
Joining BRICS could provide Egypt with several benefits. Firstly, it could help reduce demand for US dollars, which would help the crisis-hit nation. Secondly, it could provide access to a large market of emerging economies, which could boost trade and economic cooperation. Thirdly, it could help Egypt diversify its trade partners and reduce its dependence on traditional partners such as the US and Europe. Fourthly, it could provide access to new technologies and expertise in various fields such as infrastructure, energy, and agriculture.
Challenges of Joining BRICS
Joining BRICS could also pose several challenges for Egypt. Firstly, it would have to align its policies with those of the other member states, which could be difficult given their diverse political and economic systems. Secondly, it would have to compete with other member states for resources and markets, which could be challenging given their size and economic power. Thirdly, it would have to address its ongoing economic crisis and high inflation rate, which could affect its ability to contribute to the bloc.
Conclusion
Egypt’s application to join the BRICS bloc of emerging economies could provide several benefits, including reducing demand for US dollars, boosting trade and economic cooperation, diversifying trade partners, and accessing new technologies and expertise. However, it could also pose several challenges, including aligning policies with other member states, competing for resources and markets, and addressing its ongoing economic crisis. Overall, joining BRICS could be a significant step for Egypt in enhancing its trade and economic cooperation with emerging economies.