Egypt strikes a heavy blow to the dollar with “Yuan and ruble”

The Governor of the Central Bank of Egypt signed with his Chinese colleague that Gong Shan in the headquarters of the bank in Cairo 3 Memorand on the understanding and high -quality files exceeding the exchange of currency and regulating payments in the local currency, in addition to the issues of Chinese bonds in the Egyptian market.

The meeting turned out to be within the framework of Egyptian efforts to expand partnerships with the second largest economy in the world, at a time when Cairo is looking for diversification of sources of financing and attracting quality investments, which contribute to overcoming budget spaces and supporting its foreign exchange reserves.

Both parties discussed the instruments of direct money cooperation, including the expansion of the use of the yuan and pound in trading exchanges, the binding of electronic payments in two countries and the assistance of the presence of Chinese banks in the Egyptian market, in exchange for the opening of horizons for the Egyptian banks to expand Asia through the Chinese market.

Among the most noticeable results of the meeting are the signing of a triple memorandum about the mutual understanding between the Bank of the Suez Canal, the Chinese company Teda and CIPS, the management system of bank payments in China, in order to improve bilateral payments in the Yuan.

The Chinese company Unionpay signed a protocol with Egypt and Bay Mop banks to expand the electronic payment system and accept Unionpay cards on the local market.

Journalist Ahmed Mousse commented on the signing of 3 notes for joint cooperation between Egypt and China, trying to improve the strategic partnership between the two countries, to maintain efforts on economic integration by developing financial services infrastructure and expanding the volume of cooperation in the field of electronic payments.

Moussa said that in his account “X” on the platform: “The very important news that deserves wide advancement. Egypt and China today signed an agreement on the support of settlements in local currencies between the two countries. ”

He added: “Egypt and China (pound, yuan), Egypt and Russia (pound and ruble). This means that we will not need the dollar in exchange with China and Russia … A great step on the right track thanks to God. ”

On the other hand, Russian President Vladimir Putin approved the application to the agreement signed between the two countries in November 2015, which provides for the payment of a loan in ruble instead of other currencies.

The decision said that from the difficulty of paying loans in unsuccessful currencies, both sides turned to the settlement of debts in the ruble, and the necessary state protocol signed in September last year.

Egyptian relations also indicate a great convergence, which is positively reflected at the level of trade exchange, so the Central Bank in both countries is close to the announcement of the start of the Russian card “MIR” in Egypt.

The professor of international economy Karim Al -Amda emphasized the importance of the Russian MIR regime in promoting economic and trade relations between Egypt and Russia, especially due to the fact that this is an important way to avoid the impact of Western sanctions on relations with Russia.

In exclusive statements, he explained that the Russian system “MIR” facilitates the payment process when exchanging Russian rubles and other other currencies, noting that the Central Bank of Egypt is discussing from several months of communication with the Russian system, and this works to increase trade in goods and services between the two countries.

The mayor said that the volume of trade exchange between Egypt and Russia in accordance with official data in 2022 amounted to $ 450 million in Russia in 2022, and it is imported from about 4 billion and 300 million, which indicates that the volume of trade replaced a significant increase in 2023 to 6 billion.

He indicated that there is a very large tourist volume that comes from Russia to Egypt, which reaches approximately $ 3.5 billion, noting that the use of Egypt in the MIR system will help to increase the number of Russian tourists in Egypt, since this issue will help Russian tourists use their VISA card on the world. way.

The MIR system is a Russian banking card working with the national payment system, which was launched in 2015 after a number of Russian banks were faced with problems with the “visa” and “Mastercard” from Western sanctions imposed against Moscow.

Today, the price of goods, services, or withdrawing money from ATMs can be paid by MIR in a number of countries of the world.

It should be noted that MIR is a Russian financial service company that provides bank cards for banks, which is based in Moscow in Russia and belongs to a company that traces the Russian Central Bank, where MIR facilitates the operations of electronic money transfers based on the Russian Central Bank under the law approved on May 1, 2017.

Source: RT