Egypt calls on BRICS summit for effective action to reduce the dominance of the dollar

Egypt has called on BRICS countries to make progress in enabling financial settlements in local currencies, in line with the 'BRICS' cross-border payment initiative proposed by Russia during its presidency in 2024.


During the seventeenth BRICS summit held in Rio de Janeiro, Brazilian capital, Egyptian Prime Minister Mustafa Madbouly emphasized Egypt's keen interest in enhancing economic, financial, and monetary cooperation among group countries, especially among central banks, and increasing funding provided by the New Development Bank in local currencies.

Russia proposed the 'BRICS Clear' initiative during its 2024 BRICS presidency to establish a cross-border financial settlement system based on local currencies, aiming to reduce reliance on the US dollar and avoid Western sanctions. This initiative gains particular importance amidst global economic challenges, including the debt crisis faced by developing countries, which Egypt seeks to address by supporting initiatives such as debt-for-investment swaps.

The New Development Bank, established by BRICS in 2014, is a key tool for financing development projects in local currencies, reducing reliance on Western financial institutions such as the World Bank and the International Monetary Fund.

In his speech, Madbouly highlighted several priorities, including accelerating joint cooperation and integration to address challenges through implementing joint projects in various economic sectors, including energy, manufacturing, infrastructure, as well as emerging technologies and innovation, especially artificial intelligence.

He emphasized that providing easy financing and transferring technology to developing countries is essential to achieve sustainable development and eradicate poverty, pointing out Egypt's belief in the need for BRICS to effectively work on improving the international debt mechanism to support debt sustainability, in addition to supporting the reform of the global financial system to meet the needs and priorities of developing countries.

He stressed that the real impact of the BRICS group lies in its ability to create the necessary space and vision to achieve the common interests of group countries in various fields, meeting the aspirations of the people.

Brazil is hosting the seventeenth BRICS summit in Rio de Janeiro on July 6 and 7, under the theme 'Enhancing cooperation in the global South for more inclusive and sustainable governance'. The summit comes amid escalating geopolitical tensions and focuses on key issues such as enhancing trade in local currencies, developing a cross-border payment system, and expanding the role of the New Development Bank in financing infrastructure projects and sustainable development.