Will Egypt's accession to the "BRICS" affect the car market?

The markets are anticipating the impact of Egypt's accession to the BRICS group, specifically its impact on the car market in Egypt, and expectations indicate that the car market will witness a decline in prices during the coming periods after Egypt joined the BRICS group.

Dealing in local currencies or the single currency

  Khaled Saad, Secretary-General of the Egyptian Automobile Manufacturers Association, said that Egypt's accession to BRICS is expected to have a clear impact on the car market in Egypt through dealing in the local currency against the local currency or through the single currency, and therefore the dollar will not be an intermediary currency in the market. Transactions between this economic bloc with the fastest growing economies.

Car prices fall

The Secretary-General of the Egyptian Automobile Manufacturers Association added, in press statements, that Egypt imports local components with a large percentage from the BRICS economic bloc countries, and with Egypt joining the group, it is assumed that trade exchange operations between the group countries will increase, and dependence on the local currencies of these countries in Trade exchange between them or the unified currency in the event of the launch of this currency; Which will have a positive impact on the auto industry in Egypt, and thus we will witness a decline in car prices in the Egyptian market.

Benefit from the BRICS countries

Saad added that Egypt benefits greatly from joining the BRICS, specifically from China, the second largest economy in the world, of which Egypt's import of cars exceeds 45%.

Earlier, Dr. Samir Aref, Chairman of the Board of Directors of the Tenth of Ramadan Investors Association, said that Egypt has a golden opportunity after joining the BRICS group to adjust its trade balance and reduce dependence on the dollar as the main currency in its imports.

Aref stressed, in a press statement, today, Monday, that supporting industry and increasing production are the only solution to get out of Egypt's economic crises by expanding the horizons of industrial dealings with the countries of China, Russia and India, and localizing industry and technology locally. To support trade exchanges between these countries, from which the import process is a major factor in the trade balance, so that we do not have to search for the Russian ruble and the Chinese yuan again later.

The head of the 10th of Ramadan Investors Association praised the early interest of the political leadership in Egypt's infrastructure and preparing the environment to receive more foreign investments, expand manufacturing projects, and truly exploit Egyptian wealth to advance the economy and diversify sources of income.

Positive effects on the Egyptian economy

He also pointed out that this gathering gives the Egyptian economy great confidence, making it a strategic center for many industries and projects and access through them to various markets, linking China with Africa, reducing dependence on the dollar and gradually improving the strength of the Egyptian pound.