Egypt Mulls Using Local Currency for Trade with India, China, and Russia
Dr. Ali El-Meselhi, Minister of Supply and Internal Trade, has announced that the ministry is currently considering adopting the country’s local currency in its trade transactions with India, China, and Russia.
He stated during a press conference that so far, no serious measures have been taken, as the matter is still under discussion with central banks and commercial banks.
This move is part of the government’s general direction to reduce pressure and demand on the US dollar.
El-Meselhi added that Egypt, in the framework of diversifying its wheat import sources, has considered 22 origins in cooperation with the Ministry of Agriculture.
This decision, if taken, could potentially strengthen Egypt’s position in international trade and reduce its reliance on the US dollar, which could lead to significant cost savings. However, it remains to be seen how the adoption of the local currency will affect trade relations with these countries.
He also pointed out that during the first six months of the Russian-Ukrainian crisis, there was difficulty in supplying wheat through the Black Sea, which led to the entry of France, Romania, Bulgaria, and Germany as suppliers. However, after the United Nations Safe Passage agreement was reached, wheat supplies resumed from Russia and Ukraine.
In recent years, Egypt has made significant efforts to improve its economic performance and attract foreign investment.
The government has implemented structural reforms and taken steps to address the country’s macroeconomic imbalances, resulting in an improvement in economic indicators such as growth, inflation, and the budget deficit
Additionally, Egypt has received financial assistance from international organizations such as the IMF and the World Bank, which have supported the country’s economic reform program.
These developments have led to increased investor confidence in Egypt’s economy and have helped to promote economic growth and job creation.