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Egypt Seeks Bilateral Partnerships with BRICS

The Egyptian Minister of Finance, Mohamed Maait, with International Cooperation Minister Rania al-Mashat during meetings at the New Development Bank in China (Asharq Al-Awsat)
The Egyptian Minister of Finance, Mohamed Maait, with International Cooperation Minister Rania al-Mashat during meetings at the New Development Bank in China (Asharq Al-Awsat)
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Egypt Seeks Bilateral Partnerships with BRICS

The Egyptian Minister of Finance, Mohamed Maait, with International Cooperation Minister Rania al-Mashat during meetings at the New Development Bank in China (Asharq Al-Awsat)
The Egyptian Minister of Finance, Mohamed Maait, with International Cooperation Minister Rania al-Mashat during meetings at the New Development Bank in China (Asharq Al-Awsat)

Egypt is committed to strengthening cooperation with the New Development Bank and establishing bilateral and multilateral partnerships with BRICS countries, says Finance Minister Mohamed Maait.

Maait, the Governor of Egypt at the New Development Bank, added that the collaboration aims to strengthen solidarity among nations in addressing the current global economic challenges, which have significantly impacted developing countries.

The Minister spoke at the New Development Bank's Board of Governors meeting at the Shanghai, China headquarters.

Maait emphasized the importance of international development partners adopting more suitable programs to enhance the capabilities of emerging economies without imposing excessive financial burdens.

The top official noted that collaborating will strengthen solidarity among nations in addressing the current global economic challenges.

The Bank's significant financing capabilities and advanced international expertise contribute to a portfolio that promotes green growth, supports Egypt's development path in various sectors, and is aligned with Egypt's Vision 2030, said the Minister.

Maait also highlighted Egypt's commitment to diversifying funding sources to meet development needs and alleviate burdens while improving the standard of living and public services.

He said that Egypt is looking for international partners' support, including the New Development Bank, to complete its development journey and enhance its capabilities for green recovery by stimulating investments in environmentally friendly projects and creating financial space for developing countries to invest in infrastructure.

For her part, Minister of International Cooperation Rania al-Mashat said that Egypt's accession to the membership of the Bank enhances its efforts to promote development and achieve integration with emerging economies and developing countries to mobilize the necessary resources to finance infrastructure projects and sustainable development.

Mashat pointed out that Egypt's membership reflects the steps implemented to enhance international cooperation, development financing, and the creation of constructive partnerships with international institutions and multilateral development banks.

New Development Bank (NDB) is a Shanghai-based multilateral development bank established by Brazil, Russia, India, China, and South Africa (BRICS).

Since its inception, the Development Bank has approved over 90 financing projects worth $32 billion in transportation, water supply, clean energy, digital and social infrastructure, and construction.

The Bank supports sustainable development and enhances regional cooperation and integration by investing mainly in infrastructure. It expanded its operations to include the health and social infrastructure, considering the negative economic impact of the COVID-19 pandemic on the global economy.

In 2012, BRICS countries agreed to establish the Bank with a capital of $100 billion during their fourth summit in New Delhi.

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Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar weakened broadly on Thursday, while the euro rallied after President Donald Trump announced harsher-than-expected tariffs on US trading partners, unsettling markets as investors flocked to safe havens such as the yen and Swiss franc.

The highly anticipated tariff announcement sent shockwaves through markets, with global stocks sinking and investors scrambling to the safety of bonds as well as gold.

Trump said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners.

The new levies ratchet up a trade war that Trump kicked off on his return to the White House, rattling markets as fears grow that a full-blown trade war could trigger a sharp global economic slowdown and fuel inflation, Reuters reported.

The dollar index, which measures the US currency against six others, fell 1.6% to 102.03, its lowest since early October.

The euro, the largest component in the index, gained 1.5% to a six-month high of $1.1021.

Trump has already imposed tariffs on aluminium, steel and autos, and has increased duties on all goods from China.

"Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic', which will keep markets on edge for the foreseeable future," said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.

The risk-sensitive Australian dollar added 0.56% to $0.63365, while the New Zealand dollar climbed 0.9% to $0.5796.

The yen strengthened to a three-week high against the dollar and was last up 1.7% at 146.76 per dollar, while the Swiss franc touched its strongest level in five months at 0.86555 per dollar.

"Negotiations are now going to be front of mind. This is probably the other big part of why we're seeing some of these currencies outperform," said Nicholas Rees, Head Of Macro Research at Monex Europe.

"It's very difficult actually to see how other countries make concessions that would encourage the US to lift these tariffs. And I think that's a big underpriced risk."

Investors are worried that some US trading partners could retaliate with measures of their own, leading to higher prices.

EU chief Ursula von der Leyen described the tariffs as a major blow to the world economy and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.

Worries about a global trade war have intensified since Trump stepped into the White House in January, combining with a slew of weaker-than-expected US data to stoke recession fears and undermine the dollar.

The dollar index is down more than 5.7% this year.

"These tariffs have certainly significantly increased the risks to the downside for global growth, so on balance we think that will eventually start to become more supportive again for the dollar," said Lee Hardman, senior currency analyst at MUFG.

In Asia currencies, China's onshore yuan slid to its weakest level against the dollar since February 13. China's offshore yuan also hit a two-month low.

The Vietnamese dong slumped to a record low.

Elsewhere, the Mexican peso and Canadian dollar strengthened.

Canada and Mexico, the two largest US trading partners, already face 25% tariffs on many goods and will not face additional levies from Wednesday's announcement.