In a significant move ahead of Prime Minister Narendra Modi’s upcoming visit to Egypt, the African nation has formally announced its application for membership in the BRICS (Brazil, Russia, India, China, South Africa) group. Egypt’s decision to join BRICS, coupled with its plans to drop the US dollar in trade with BRICS member countries, holds substantial implications for the global geopolitical landscape and presents promising opportunities for economic cooperation.
Prime Minister Narendra Modi will visit the US and Egypt from June 20 to 25, the government officially announced. From the US, PM Modi is heading to Cairo. Discussions during the visit are expected to cover diverse areas such as defence cooperation and education, along with Egypt’s application for BRICS membership. The visit is seen as a reciprocal gesture following Egyptian President Abdel Fattah El-Sisi’s attendance as the chief guest at India’s Republic Day celebrations earlier this year. It underscores the commitment to enhancing bilateral relations between the two nations.
Egypt’s inclusion in BRICS signifies a potential shift away from US and European hegemony, consolidating the group’s dominance. The country’s numerous assets, including projected rapid economic growth, abundant natural resources, and strategic control of the Suez Canal, make it a valuable addition to the bloc. By adopting local currencies for trade with BRICS members, Egypt aims to strengthen economic ties and reduce its reliance on the US dollar. This move aligns with BRICS’ broader initiative to promote alternative currencies in international trade. With other countries expressing interest in joining BRICS, the group’s influence and economic power are expected to experience further growth.
Experts point out that Egypt’s interest in joining BRICS represents a geopolitical shift, reflecting a desire to diversify economic partnerships beyond traditional alliances with the United States and Europe. It also signifies Egypt’s willingness to forge closer ties with emerging economies while reducing dependence on Western powers.
Egypt’s projected rapid economic growth, combined with its rich natural resources and strategic location, presents significant opportunities for BRICS members. Increased trade and investment between Egypt and the BRICS countries can contribute to economic development and foster greater cooperation within the group.
Furthermore, Egypt’s application to join BRICS may influence the perceptions of other Middle Eastern and African nations toward the group. It has the potential to inspire regional countries to consider alternative alliances and partnerships, thereby reshaping the balance of power in the region.
As BRICS nations expand their economic influence, launch alternative currencies, and challenge the dominance of the US dollar, the global economy stands poised for significant changes. The competition between currencies and trade blocs can impact international trade, financial markets, and the overall distribution of power among nations.
Egypt’s decision to apply for BRICS membership and its intention to reduce reliance on the US dollar hold far-reaching implications. This development signifies a geopolitical shift, offers economic opportunities, influences regional dynamics, and contributes to the ongoing transformation of the global economic landscape. The forthcoming summit in South Africa will provide an important platform for BRICS member states to discuss Egypt’s membership and further solidify the group’s growing influence.