In the global economic map,Egypt's latest move marks a major shift as it plans to move away from the dollar's dominance in settlements and instead trade with the BRICS countries using their own currencies. This strategy is not only aimed at reducing foreign exchange risks and expanding international cooperation, but also seeks to enhance the international status of its own currency. The move was strongly supported by Russia, which saw it as an opportunity to weaken the dollar's hegemony.
On the big chessboard of the world economy, a bold move by Egypt may indicate the initial formation of a new international pattern. Egypt announced plans to conduct in-depth negotiations with the BRICS countries with the aim of exchanging the US dollar in the settlement for their respective national currencies. This decision not only reflects Egypt's reassessment of the current international system, but also reveals a growing international trend, that is, the "de-dollarization" of reducing dependence on the US dollar.
Since the end of World War II, the U.S. dollar has quickly become the dominant currency in the world** and financial sector with the establishment of the Bretton Woods system. The peg of the US dollar to **, and later the petrodollar agreement with OPEC countries such as Saudi Arabia, ensured its hegemony in the global economy. Despite the collapse of the Bretton Woods system, the dollar's global standing still seems to be in flux.
However, over time, the global wealth harvesting carried out by the United States using the dollar has caused discontent in many countries. Especially recently, the West's all-round sanctions against Russia after the outbreak of the Russia-Ukraine conflict have made countries around the world deeply reflect on the dependence of the US dollar as the only international currency。Egypt's decision can be seen as a challenge to the current international financial system and an exploration of the long-term hegemony of the US dollar.
First, by "de-dollarizing", Egypt expects to be able to reduce foreign exchange risk, which is crucial for a country with a struggling economy. Egypt has experienced chronic inflation and economic instability, with one-third of its inhabitants living below the poverty line. Against this backdrop, it is all the more important to reduce dependence on foreign exchange, especially the US dollar.
Secondly, the use of local currencies for settlement with BRICS countries will help enhance the international status and influence of the Egyptian currency, which is of great significance for enhancing national autonomy and expanding international influence.
In this regard, some netizens said:
Also, netizens said:
Russia welcomes and supports this decision by Egypt. For Russia, any action that can reduce the dollar's international standing is in line with its long-term strategy to weaken the economic influence of the United States. In the context of tense relations between the United States and Russia and Western economic sanctions against Russia, Russia hopes to find new opportunities for international and financial cooperation by promoting "de-dollarization".
In addition, the BRICS countries, as an emerging international economic cooperation organization, are increasingly influential. Egypt's close cooperation with the BRICS countries is not only conducive to its own economic development and stability, but also a supplement and challenge to the existing international system and monetary system. While actively promoting the use of national currencies for settlement, BRICS countries are also providing new models and opportunities for international economic cooperation.
Overall, Egypt's strategy, while challenging, is also full of opportunities. It could not only bring economic benefits to Egypt itself, but also promote a more diversified and balanced global economy.
This could be a critical turning point in the global economic landscape, marking the beginning of a new model of economic cooperation and a major challenge to the existing international monetary system. For the dollar, this may be a wake-up call to adapt to a changing world where a more diversified international** and financial system is taking shape.
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