According to a source, Egyptian legislators recently praised the parliament for endorsing a deal that enables the nation to join the New Development Bank. The MPs, according to the article, are of the opinion that Egypt will be able to limit its need for dollars and retain its foreign exchange reserves by joining this organisation supported by the BRICS.
Mohamed Abdel-Hamid, a lawmaker, reportedly claimed the decision helps lower demand for US dollars after the Egyptian parliament recently approved a deal that clears the way for the nation to join the New Development Bank. The New Development Bank, established by the BRICS nations of Brazil, Russia, India, China, and South Africa, aims to assist “public or private initiatives through loans, guarantees, equity participation, and other financial instruments.”
Abdel-Hamid, who serves as the deputy chairman of the economic committee of the parliament, claimed that joining the organisation also enables Egypt to benefit from the bank’s assistance in sectors like health, infrastructure, and telecommunications.
The lawmaker reportedly stated that because members of the bank are permitted to exchange their national currencies for goods and services, Egypt’s membership in the BRICS group’s New Development Bank will also relieve the state budget of the burden of locating U.S. dollars to cover the country’s imports.
Egypt, which recently received a bailout package from the International Monetary Fund (IMF), has reportedly become the third nation to indicate interest in joining the BRICS club of five major rising economies.
Meanwhile, Mervat Mattar, another lawmaker, shared Abdel-views Hamid’s on Egypt’s possibilities after it enters BRICS. In her remarks after the pact’s approval, Mattar described BRICS as a group that will aid in reducing the dominance of the dollar.
According to reports, Mattar stated that “the BRICS group is an essential forum that can shift the trajectory of the international economy away from American supremacy and the U.S. dollar.”
According to reports, Mattar used the conflict in Ukraine and its effect on Egypt’s import bill to bolster her case.
Ahmed El-Awadi, a different congressman and the chairman of the defence and national security committee of parliament, claimed that the decision will open up new markets for Egyptian industrial and agricultural goods.