India and Egypt are considering joining the BRICS de-dollarization movement and ending their trading in US dollars.
Initiating talks to remove the US currency from their commercial connections, Egypt and India are strategically aligned with the de-dollarization ambitions of the BRICS grouping.
A major change is occurring in the world economy, and this audacious step is one component of a rising tendency among BRICS countries to lessen reliance on the US currency in international commerce.
An important step in the BRICS bloc’s broader plan is the decision by Egypt and India to avoid using the US currency in their trade dealings. After receiving an offer to join the BRICS group at its 2023 annual meeting, Egypt decided to become involved with this endeavor.
Becoming a part of this group is more than just signing a membership card; it’s stepping into a movement to change the way international commerce is done.
These countries are doing more than just strengthening bilateral connections; they are also taking on the US dollar, the undisputed leader in international trade, by settling transactions in local currencies.
The significance of India’s contribution in this change is immense. India has been a leader among the BRICS nations in their push to diversify their economies away from the currency.
The country’s persistence in seeking alternatives to the US dollar in its commercial connections with Ethiopia and the historic oil transaction completed in local currencies with the UAE are evidence of its dedication to this goal.
There is increasing dissatisfaction with the present global financial system, as shown by the six new member nations of the BRICS bloc: Saudi Arabia, the UAE, Iran, Egypt, Ethiopia, and Argentina.
An apparent change in the economic power dynamic may be on the horizon, as the bloc’s growth and coordinated efforts to de-dollarize are sending shockwaves across international borders.
These talks between Mohamed Maait, Egypt’s finance minister, and Ajit Gupte, India’s ambassador to Cairo, are more than simply business as usual.
They show that the two countries are working together to find ways to diversify their economies and attract more investment.
A complicated network of financial manipulations aimed at lessening dependent on the US currency was shown during the meetings, which also included the usage of Egypt’s considerable bond issuance in China for possible use in India’s financial markets.
This pattern is not limited to the Indian subcontinent and Egypt. Throughout the year, every member of the BRICS group has made it clear that they want to see the dollar’s influence in international trade negotiations reduced.