Egyptian MPs recently hailed the parliament’s endorsement of the agreement that allows Egypt to officially join the New Development Bank (NDB) set up by BRICS. NDB seeks to support “public or private projects through loans, guarantees, equity participation and other financial instruments.”
The lawmakers believe joining this BRICS-backed institution which was established by Brazil, Russia, India, China and South Africa (BRICS) in 2014, will help Egypt reduce its demand for US dollars and enable it to safeguard its foreign exchange reserves.
“Egypt’s joining of the BRICS group’s NDB will also relieve the state budget of the pressure of finding U.S. dollars to meet the country’s imports as members of the bank can use their national currencies in exchange for trade,” Abdel-Hamid, who is the deputy chairman of the parliament’s economic committee reportedly said.
Another lawmaker, Mervat Mattar, echoed Abdel-Hamid’s sentiment, saying the BRICS group is an important forum that can steer the course of the international economy away from American domination and the U.S. dollar
MP Ahmed El-Awadi, head of Parliament’s Defense and National Security Committee, said the move opens new markets for Egypt’s agricultural and industrial products.
Russia’s Ambassador to Egypt, Georgy Borisenko, stated that Russia supports Egypt’s steps to join BRICS, TV Brics reported.
“Egypt is also interested in joining BRICS and has already indicated this desire in official letters sent to all members of the group,” Borisenko was quoted as saying.
The diplomat added that Moscow supports Cairo’s application and will be satisfied with Egypt’s full entry into the BRICS.
Egypt’s president Abdel-Fattah El-Sisi took part in the BRICS group’s summits in 2017 and 2022. The next BRICS summit will be hosted by South Africa in August.
BRICS is an independent international organisation that encourages trade and political and cultural cooperation among member states. The group was formed by Brazil, Russia, India and China in 2006, while South Africa joined it in 2010. Apart from Egypt, a number of countries, including Argentina, Iran, Indonesia and Saudi Arabia are also interested in joining the organisation. Algeria had previously applied for full membership in BRICS.
The BRICS plans to decide this year whether to admit new members and what criteria they would have to meet.
“Enlarging the group that includes Brazil, Russia, India, China and South Africa would benefit Beijing, as the world’s second-biggest economy tries to build diplomatic clout to counter the dominance of developed nations in the United Nations” Bloomberg reported on Wednesday (Feb. 15).
With reporting by Ahram, Brics TV, Bloomberg