China and Egypt Ditch Dollar for Local Currencies in Major Trade Shift

China has taken another step towards de-dollarization by agreeing to trade in local currencies with its largest African partner, Egypt. The move was announced during a historic visit by Chinese President Xi Jinping to Cairo, marking the 70th anniversary of diplomatic relations between the two nations.

The joint statement released after the meeting disclosed that China and Egypt had agreed to boost trade in their respective currencies, rather than relying on the US dollar. This is part of China's broader ambition to reduce dependence on the US dollar and promote a more multipolar global financial system.

China has long been at the forefront of efforts to challenge the dominance of the US dollar, with the BRICS group of nations advocating for a potential BRICS currency as a replacement. The move is seen as a significant step towards reducing the influence of the US dollar in international trade and finance.