BRICS members Egypt and Belarus have agreed to create an electronic trading bridge to facilitate trading in local currencies. A high-level delegation from the Belarusian Universal Commodity Exchange (BUCX) visited Cairo to hold discussions during the Belarusian-Egyptian Business Forum.
While Egypt is an official member of BRICS, Belarus is a ‘Partner Country’ of the alliance. The bloc added 13 nations as Partner Countries in October 2023, allowing emerging economies to be a part of the grouping. It also helps them gain trade deals with member nations, giving opportunities to settle payments in local currencies.
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Egypt & Belarus Identify Key Export Goods
Belarus has identified key export goods such as dairy supply products, feed additives, and swan timber to Egypt. Simultaneously, Egypt will export fruit puree, juice concentrates, polymer products, and agricultural seeds to Belarus. Both parties also agreed to exchange analytics and open the markets for the two countries. Once the electronic trading bridge is launched, BRICS members Egypt and Belarus will begin settling in local currencies.
BRICS New Trade Settlements Rising
The BRICS alliance is increasingly settling payments in local currencies to end US dollar dependency. They aim to strengthen their local currencies to help their businesses and exports thrive. It also gives a boost to the nation’s GDP, allowing it to take a bigger spot in the global economy. The move gives emerging economies a leg up in policy making and not be subjected to harsh negotiations.
Also Read: BRICS Pay Receives Interest From European Union, South America, Africa
Countries in the Global South, Southeast Asia, South America, Eastern Europe, and Africa are considering taking a leaf from the BRICS playbook and using local currencies to safeguard their economies. The next decade would be much different from what we know it as developing countries are taking the helm of the global economy. The US dollar could face serious challenges as its global clout is reducing.
