Egypt suspends use of dollar trade, embraces local currency

The government of Egypt has officially stopped using the US dollar for business transactions and adopted the country’s local currency.

The official exchange rate of the US dollar in Egypt is the Egyptian 30 pounds. At the same time, in the parallel black market, it is 65 pounds as of Friday, February 16, according to local media.

This decision is among the BRICS de-dollarization strategy, and Egypt is one of the African countries that received an invitation to join the alliance at its 2023 summit.

The intergovernmental organisation BRICS’s members include Russia, Brazil, India, South Africa, China, United Arab Emirates, Ethiopia, and Iran.

Last year, BRICS made headlines across countries for one of its goals, which is to reduce the domination of the US dollar and raise its rank. Subsequently, the recent decision by the Egyptian government coincides with the goal.

Earlier this week, Egypt’s Ministry of Foreign Affairs said it would discuss with the countries the country transacts business with to accept the local currency, which will stop the high cost of transacting business with the foreign currency.