The BRICS alliance is advancing its shift toward local currency settlements in bilateral trade, a move aimed at reducing reliance on dominant foreign currencies such as the U.S. dollar. Egyptian Prime Minister Mostafa Madbouly confirmed this trend during a recent press engagement, underscoring a broader effort among BRICS countries to deepen economic integration and enhance financial sovereignty.
“There is a clear trend within the BRICS alliance to conduct trade and financial settlements in local currencies,” Madbouly told Sada El-Balad, a partner of TV BRICS. “This will begin with bilateral arrangements between member countries and may later expand into broader multilateral systems.”
According to Madbouly, several BRICS nations have already started implementing this system. He highlighted that local currency trade is particularly effective when trade balances are relatively even, as it minimizes the need for hard currency reserves and fosters monetary stability.
“When there is a trade balance between two countries — and no significant surplus or deficit — local currency exchange in trade can ease the burden on foreign currency demand,” he explained.
The push for local currency settlements reflects BRICS’ long-term strategy to de-dollarize intra-bloc transactions and develop alternative financial mechanisms that support a more multipolar global economy. These efforts are also being seen as a response to growing geopolitical and economic uncertainty.
Egypt, which officially joined BRICS in 2024, has taken concrete steps to align with this trend. Earlier this week, Egypt and China signed three financial cooperation agreements to facilitate trade in Chinese yuan and enhance cross-border payment infrastructure.
Analysts view Egypt’s active participation as a signal of its commitment to BRICS’ vision of financial independence, South-South cooperation, and enhanced regional trade. The local currency push marks a significant milestone in building a more resilient and self-reliant economic bloc.
