Russia adopts Egyptian pound instead of U.S. dollar

The Russian Central Bank has added the Egyptian pound into the Russian exchange rate list, to increases reliance on both local currencies and reduces demand for the US dollar in both countries, the Russian Embassy in Egypt stated on Thursday.

The Egyptian currency has already started trading in the Russian exchange market since Wednesday, as one-pound records about 2.33 Russian Ruble, the statement mentioned.

The step will allow Egyptians who travel to Russia to be able to exchange their money from Egyptian pounds to Russian rubles, as Egyptian economists have described the decision as a positive step for the ailing Egyptian pound.

The statement added this reduces dependence on U.S. dollar reserves since Egypt has been struggling with a shortage in the foreign currency for the past few months.

Prior this step, Egyptian imports from Russia traded using the U.S. dollar that totaled nearly $2.48 in 2021, the United Nations Comtrade database on international trade showed.

Russia also added the Thai baht, Vietnamese dong, the Serbian dinar, New Zealand dollar, Georgian lari, Indonesian Rupiah, UAE dirham, and Qatari Riyal, to its exchange rate list.

Noteworthy, that Egypt and Russia have a long history of strategic ties and mutual cooperation in multiple fields.