Egypt aims BRICS entry will lure foreign cash

By Nada Ali On Aug 27, 2023

Prime Minister of Egypt Moustafa Madbouly attends a meeting during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg, South Africa August 24, 2023. Photo Credit: REUTERS

Egypt aims its imminent inclusion in the BRICS bloc of developing nations will help ease its shortage of foreign currency and attract new investment, but analysts say it may take time before any benefits appear.

“The group’s aim of reducing dollar transactions will lower the foreign currency pressure in Egypt,” according to the Egyptian cabinet said in a statement on Thursday.

However, Brazil’s President called on Wednesday for the BRICS nations to create a common currency for trade and investment between each other, as a means of reducing their vulnerability to dollar exchange rate fluctuations.

The BRICS group of major emerging economies – Brazil, Russia, India, China and South Africa – invited Egypt and five other countries on Thursday to join, and Egypt immediately welcomed the offer.

“I appreciate Egypt being invited to join BRICS and look forward to coordinating with the group to achieve its goals in supporting economic cooperation,” President Abdel Fattah al-Sisi said soon after being invited.