Egypt’s Parliament has given the green light for the country to join the BRICS Bank, also known as the New Development Bank, as it gets closer to join the group of 5 nations.
According to reports, the lawmakers are positive about the country’s membership in the BRICS Bank viewing it as a means of reducing reliance on the US dollar.
Deputy chairman of Egyptian Parliament’s economic committee, Mohamed Abdel-Hamid, explained to local media how the country will benefit from the move.
“We will benefit from the bank’s financial and technical assistance in areas of sustainable development, health, infrastructure, transport, water and telecommunications,” said Abdel-Hamid.
“Egypt’s joining of the BRICS group’s New Development Bank will also relieve the state budget of the pressure of finding US dollars to meet the country’s imports as members of the bank can use their national currencies in exchange for trade,” he added.
Egypt is one of three nations, alongside Iran and Argentina, that have expressed interest to join BRICS, a geopolitical bloc of emerging economic powers, adding up to about 20% of global GDP.
Current membership includes:
- Brazil
- Russia
- India
- China
- South Africa
In the past, BRICS has held discussions to issue a cross-national digital money intended to reduce their dependence on the United States dollar.
Such sentiment was echoed by Egyptian legislators as they discussed and passed the agenda.
Egyptian MP Mervat Mattar told local media:
“The BRICS group is an important forum that can steer the course of the international economy away from American domination and the US dollar.
Due to the war in Ukraine, we in Egypt have been suffering from a severe shortage of foreign exchange, particularly US dollars, to meet our import needs. This agreement comes to reduce demand on the US dollar and opens new horizons of economic cooperation with a big economic bloc like the BRICS group.”
The New Development Bank, headquartered in Shanghai, China, was established in 2014, originally as BRICS Development Bank, with the goal of providing financing for infrastructure and sustainable development projects.
As the first Arab country to join the bank, Egypt’s membership is expected to expand the bank’s reach in the African and Middle Eastern regions and offer opportunities for the country to collaborate with other member nations on projects aligned with its national development objectives.
Joining the BRICS Bank is expected to bring numerous benefits to Egypt, including financing for infrastructure and development projects, as well as the ability to participate in decision-making and shape policies. The access to financing and investment opportunities offered by the bank will play a crucial role in driving economic growth and supporting the country’s development goals.
Egypt’s president took part in the BRICS summits in 2017 and 2022.
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