Among the calls for de-dollarization catching pace, new rival currencies are coming up, diversifying their use cases. With BRICS working on launching a single currency, many countries are now lowering their dependence on the US dollar.
Amid all this, a new rival currency is gaining momentum against the US dollar. The Egyptian Pound, which had depreciated significantly in 2023, is now gaining strength against the USD.
Also Read: The Chinese Yuan Is Unsettling the US Dollar: Here’s Why
EGP Gains Momentum
A notable investor on X, SEP123, pointed out an interesting insight. The analyst shared how EGP is gaining strength against the USD.
“The Egyptian pound (EGP) is currently experiencing a gradual strengthening against the US dollar. As of March 3, 2024, the official exchange rate is around 30.95 EGP per USD. This represents an improvement compared to earlier in 2023, when the EGP depreciated significantly.”
The cause of this sudden spike in exchange rates is primarily triggered by two major reasons. Several reports signal that the country is potentially getting an influx of funds from the UAE, which pushed the USD down a notch.
Similarly, per a local news outlet, the New Arab, an IMF delegation visit may have also played its part in determining the price of EGP.
Also Read: BRICS Prepares to Launch Currency in 2024
“An IMF delegation, led by the Mission Chief for Egypt, Ivanna Vladkova Hollar, had concluded a two-week official visit to Cairo, where the two sides discussed the first and second reviews of the country’s reform program supported by the fund’s Extended Fund Facility (EFF). The visit came amid unconfirmed news on the increase in loans the government would receive.” The outlet reported
BRICS vs. Dollar
In the meantime, calls to lower dependency on the US dollar have intensified. Several sources have pointed out that BRICS is working on launching a new unified currency model that could potentially threaten the US dollar legacy.
