What is the importance of Egypt joining BRICS?

Mustafa Badra, an economic expert, said today that Egypt’s entry into the BRICS group came about because of the strategic relations with the various members of the group.

BRICS group

“Badra” explained in a telephone interview with the “Extra News” channel that the markets that make up the BRICS group are large markets with large populations, large economic activity, and a large economic growth rate, pointing out that the BRICS countries themselves took advantage of the state of rejection of the continued control of the dollar over transactions, so they wanted to It launches around the world and includes countries other than the five founders.

Economic groups

The economist added that the BRICS region is not an alternative to other economic groups, explaining that the new countries in the BRICS are completely different from each other politically, economically and geographically, and this opens new and multiple markets for Egypt.

Local currencies

He pointed to the desire of the BRICS countries to use local currencies to confront the attempt to use the dollar as a weapon of hegemony, revealing that central banks in the world have reduced their dollar reserves by 2%, relying on the price of gold, whose prices have risen significantly.

Asian Development Bank

He pointed to the establishment of the Asian Development Bank by the five founding countries of the BRICS, which participated in several projects in Egypt, such as the water desalination project, stressing that the economy of the BRICS countries represents 40% of the global economy.

On a related level, the bloc’s aim to reduce intra-trade transactions in the US dollar will reduce the pressure on foreign exchange in Egypt, of which the dollar represents the largest share, which is in the interest of improving a number of local economic indicators.

“Egypt’s presence as a member state of the Development Bank of the BRICS bloc will provide opportunities to obtain soft financing for its development projects, in addition to its presence within the bloc meaning that it will benefit from the fruits of the success of its goals that are close to being achieved, with regard to creating a global system that gives more weight to developing and emerging countries.”

The five current members of the alliance - Brazil, Russia, India, China and South Africa - invited six new countries to join the group last August, and of the six countries, only Argentina refused.

In December 2023, representatives from Egypt, the United Arab Emirates, Saudi Arabia, Iran and Ethiopia attended a Sherpa meeting of BRICS countries in Durban, South Africa, indicating that the five countries had “accepted the invitation” to join the bloc, said Anil Sooklal, Pretoria’s ambassador to the United Nations.

30 countries

Russian President Vladimir Putin announced that the BRICS group attracts more like-minded countries, and that about 30 countries want to join BRICS.

Putin said in his speech on the occasion of the start of Russia’s presidency of the “BRICS” group, published on the Kremlin’s website, today, Monday, January 1, 2024, and reported by Al-Arabiya channel: The “BRICS” group is attracting an increasing number of supportive and like-minded countries that share the basic principles on which it is based. Activities: equality in sovereignty, respect for the choice of its own development path (each country), mutual consideration of interests, openness, consensus, aspiration to create a multipolar world order, a fair model for the global financial and trade system, and the search for collective solutions to the most pressing problems of the present time. .

Putin stressed that Russia will take into account the willingness of many other countries to join the BRICS group in one way or another, and there are about 30 countries ready for this, and Russia will add this to its agenda.