Will the Egyptian economy benefit from the BRICS? A question arises in light of this wave of optimism about Egypt joining this economic grouping of emerging countries. What are the returns of this joining the Egyptian economy?
In this context, Ayman Fouda, a financial market expert, said that optimism is required without being excessive in order to reveal the extent of what the economic grouping will add to Egypt, adding that the returns of this joining the Egyptian economy are:
1 – The BRICS group was officially established in 2009 in order to 3 eliminate the dominance of one currency for one country over the global economy and its fate, and what countries, especially emerging countries, have borne from the consequences of the volatility of the American economy and its successive crises and their reflection on the global economy.
2- The word BRICS in Arabic means the initials of the five countries, which are Brazil, Russia, India, India, India, China, chaina, and finally S, South Africa or South Africa.
4- 44 countries expressed their desire to join the BRICS grouping, 23 of them officially applied, and 6 of them were invited to join during the group’s annual meeting in South Africa from August 22-24, and they are
– Egypt
– Kingdom of Saudi Arabia
– The United Arab Emirates
– Iran
– Argentina
– Ethiopia
It is expected and natural that Egypt will join this economic grouping, which represents 42% of the world’s population, 23% of the world’s economy and 16% of its foreign trade, which will expand with the accession of the six new countries to the grouping, which will have added value and a positive impact on the economies of those countries. …. This will be in the long term, as the world has not witnessed a clear effect and real activation that changes the reality of the dollar in relation to the countries of the world that suffer from dollar hegemony over their economies and bear the consequences of any crisis befalling the US dollar, starting from the global financial crisis in 2008 and ending with the trade war With China, rising US inflation, Russia and Ukraine war
This was preceded by the unification of the European Union’s currency into the euro as an alternative to the dollar, which did not enjoy great dominance except over the European Union countries in varying proportions, with which the dollar still represents the largest list in trade exchange and reserves of foreign exchange, as well as the global pricing of gold.
It is necessary to prepare the emerging economies and participate in the BRICS grouping to actually benefit from the largest economic grouping, which are:
– Expanding the base of member states to maximize their influence on the global economy and their separation from America and the dollar, and to clamp down on the angry American reaction towards the countries of the group, while recognizing the status quo of the existence of this economic grouping and dealing with it as equals for the common interest.
– Establishing a unified currency to combine the BRICS, provided that it has the appropriate reserves of gold as a substitute for the dollar within its central banks.
– Setting a timetable for a real and thoughtful activation of dealing in the unified currency in trade and tourism exchange, maximizing and presenting the common interest in import, export, tourism, labor recruitment and others between the countries of the assembly and some of them as a first priority.
5- Egypt will lose the dollars of the transit of the ships of the assembly countries from the Suez Canal, as well as the dollars of the Russian tourism, which represents almost a third of the aid to Egypt6. .
However, given that Egypt is considered one of the consuming countries with a chronic deficit in the trade balance, its gains will be the highest in light of its imports exceeding its exports.
And the expert explained in an exclusive statement to “Al-Fajr”: We must be optimistic and wait for a gradual and careful return of this good event in the life of the Egyptian economy, which will in turn reflect positively on all sectors and of course the money market, and until the goal of breaking the dominance of the dollar is achieved, it is necessary to deal with reality. It is the continuous and tireless work to bridge the current financing gap in industrial and agricultural production, curb the deficit in the trade balance, maximize exports, and dispense with many imports in the local industry, which will be reflected in the relative rather than absolute dispensation of continuing the policy of flexible exchange rate and reducing everyone, which will reflect positively on the level of public debt. Foreign and state obligations in dollars.