Egyptian experts regarded the inclusion of the Egyptian pound by the Russian Central Bank in the list of currencies that determine its exchange rate against the Russian ruble as a good step that will benefit Egypt.
And the Cairo 24 website quotes economists as saying the procedure is a step towards achieving demands to replace the pound and ruble as the main currency in trade and economic transactions between Egypt and Russia and abandon the dollar, “which could ease pressure on Egypt to use dollar and revive the Russian currency against the dollar, not especially in light of the international embargo against Russia.
Experts believe that “the extent to which Egypt will benefit is determined by the volume and value of dollars that it will save in the exchange process, especially since this move will negatively affect the dollar proceeds that Egypt receives from deals with Russia, which are worth more than $ 3.5 billion and includes Russian exports and tourism revenues, which account for more than 30% of the total value of tourism in Egypt.
What Egypt needs in dollars from Russia is less than what can be provided if the ruble and pound are accepted as the main currencies in trade exchange.
Banking expert Sahar El-Damati says that Egypt’s imports from Russia over the past five years are estimated at about $19 billion, according to the Central Bank report, including basic commodities such as wheat, inputs and railways. Dollars will be in abundance, and Russia is rich in production resources for many industries in Egypt.
She added that Egyptian exports are weak compared to imports, and therefore the Central Bank “is expected to include the ruble in the list of currencies that determine its prices against the pound, and then Russian tourism will be in rubles, and it will lose.” part of the dollar, but the profit will be greater.
She pointed out that this cooperation and the replacement of the ruble and pound with dollars would revitalize the Egyptian industry, as well as make the Russian market the main source of imports and replace it with other markets from which Egypt used to import dollars.
The site quotes banking and economic expert Hani al-Iraqi: “This move is considered good, especially since it will reduce the demand for dollars, especially at the present time, which will lead to a decrease in its price in the banking system. “
Al-Iraqi added that the dollar that Egypt earns from trade deals with Russia is less than what it could need to import from there, especially since the most important thing that Egypt can save is to buy Russian wheat in rubles, and this can help in reducing its price and its impact on the consumer. Egypt, especially since wheat is food security and its availability will lead to the availability of many basic and strategic commodities.
400 Russian companies
The value of the annual trade exchange between Egypt and Russia is close to $5 billion as official data showed that the value of trade exchange between the two countries in 2021 was about $4.7 billion, up from $4.5 billion in 2020 with a possible increase in 2022. and 2023.
The value of Egyptian imports from Russia was over $3.3 billion in 2022, while Egyptian exports to Russia were $489.6 million in 2021, up from $423.3 million in 2020, an increase of 15.7 %.
The volume of Russian investments in Egypt is estimated through 400 companies with a total investment of $7.4 billion. It is also planned to implement the Dabaa nuclear project with an investment value of $29 billion, including a loan and Russian financing of $25 billion.
Source: Cairo 24
