An informed source at the Central Agency for Public Mobilization and Statistics revealed that Egypt’s accession to the BRICS bloc will contribute to saving approximately $30 billion annually, with the start of activating its membership as of the beginning of next year 2024, which represents the average volume of dollar spending on Egypt’s imports from BRICS member states. brix.
Rationalization of dollar proceeds
The source added, in a statement to “Al-Dustour”, that Egypt’s imports from the countries of the world range between 90 and 100 billion dollars annually, and therefore relying on local currencies in the movement of trade exchange with BRICS member countries instead of the dollar currency, will contribute to the rationalization of dollar spending on Imports are about a third, allowing the state to provide additional dollar proceeds that can be directed to other priority spending items.
Its impact on export earnings is “limited”
He pointed out that these steps are expected to be reflected in the prices of commodities in the local market, after they recorded successive increases over the past year and a half since the outbreak of the Russian-Ukrainian war and the subsequent scarcity of foreign exchange resources, especially the dollar, and thus the supply of commodities decreased in light of a contraction. Import movement, which could improve significantly with the restoration of flexibility in import movement and the achievement of a balance between supply and demand to restore price stability without new anomalous jumps.
In the same context, a report by the Central Agency for Public Mobilization and Statistics showed an increase in the value of trade exchange between Egypt and the BRICS countries, reaching $31.2 billion in 2022, compared to $28.3 billion in 2021, an increase of 10.5%. One billion dollars in return for exports amounting to about 4.8 billion dollars.
China ranks first among the countries of the BRICS group, the highest exports to Egypt during the year 2022, as the value of Egypt’s imports amounted to $14.4 billion, Russia came second with $4.1 billion, then India with $4.1 billion, then Brazil with $3.6 billion, and finally South Africa. $133 million. The most important commodities imported from these countries are electrical appliances, machinery, clothing, grains and fuel.
As for exports, Egyptian exports to BRICS countries do not exceed $4.8 billion, which are distributed between India $1.9 billion, China $1.8 billion, Russia $595.1 million, Brazil $402 million, and South Africa $118 million.