Egyptian lawmakers recently praised parliament’s backing of a pact allowing the country to join the New Development Bank, according to a report. According to the report, lawmakers believe that joining this BRICS-backed institution will help Egypt reduce its demand for dollars and allow it to preserve its foreign exchange reserves.
Join the BRICS
Following the recent approval by the Egyptian parliament of a deal paving the way for the country to join the New Development Bank, lawmaker Mohamed Abdel-Hamid reportedly said the move helps reduce demand for dollars. americans. Established by Brazil, Russia, India, China and South Africa or the BRICS nation states, the New Development Bank seeks to support “public or private projects through loans, guarantees, equity participation and other financial instruments.”
In addition to helping Egypt preserve its foreign currency reserves, Abdel-Hamid, deputy chairman of parliament’s economic committee, said joining the institution allows the country to win the bank’s support in areas such as healthcare, infrastructure and telecommunications.
“Egypt’s addition to the BRICS New Development Bank will also relieve the state budget of the pressure of finding US dollars to meet the country’s imports, as bank members can use their national currencies in exchange for trade,” he said. the legislator.
According to an Economic Times reportEgypt, which recently obtained a bailout package from the International Monetary Fund (IMF), has become the third country to express interest in joining the group of five leading emerging economies known as the BRICS.
Declining dominance of the dollar
Meanwhile, Abdel-Hamid’s sentiments on Egypt’s prospects once it joins the BRICS were also echoed by another lawmaker, Mervat Mattar. In his remarks after the pact was approved, Mattar characterized BRICS as an institution that will also help lessen the dominance of the dollar.
“The BRICS group is an important forum that can divert the course of the international economy from US dominance and the US dollar,” Mattar said.
To back up his argument, Mattar allegedly pointed to the war in Ukraine and the impact of this on Egypt’s import bill.
Meanwhile, another lawmaker, Ahmed El-Awadi, head of parliament’s national security and defense committee, said the move will create new markets for Egypt’s agricultural and industrial products.
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