China and Egypt Agree to Drop the US Dollar in Bilateral Trade
Beijing, Thursday, 3 September 2026.
China and Egypt have agreed to settle trade in their national currencies, accelerating regional economic alignment while incrementally reducing reliance on the U.S. dollar for bilateral commerce.
Cairo Summit Formalizes Currency Shift
On 2026-09-02, Chinese President Xi Jinping and Egyptian President Abdel Fattah el-Sisi held a summit in Cairo to mark the 70th anniversary of diplomatic relations, resulting in an agreement to increase trade settlements in their respective national currencies rather than the U.S. dollar [1]. This move aligns with Beijing’s broader ambition to reduce reliance on greenbacks in emerging market trade corridors [1]. The joint statement by the heads of state advocated for an increase in trade and investment settlements denominated in their respective national currencies, specifically the renminbi and Egyptian pound [1]. This shift highlights accelerating structural changes in international settlement systems, potentially reshaping trade financing dynamics across Africa [1].
Investment and Clearing Infrastructure
In June 2026, the People’s Bank of China authorized Standard Bank and the Industrial and Commercial Bank of China to operate the Renminbi Clearing Bank of Africa, which processed approximately $500 million in transactions within its first four months [1]. As of mid-August 2026, Egyptian Prime Minister Mostafa Madbouly reported that total Chinese investment in Egypt has exceeded $10 billion [1]. Egypt and China are exploring a new economic partnership involving up to $2 billion in potential investment, focused on an integrated industrial complex within the Suez Canal Economic Zone [1]. The third phase of expansion for the Egyptian-Chinese industrial zone is set to launch, targeting renewable energy and automotive sectors [1].
Global Reserve Data and BRICS Agenda
BRICS finance ministers and central bank governors are meeting at Bharat Mandapam in New Delhi on 2026-09-02 and 2026-09-03 to draft agenda items for the full BRICS summit scheduled for 2026-09-12 [2]. As of Q1 2026, the US dollar’s share of allocated global foreign-exchange reserves was 57.13%, up from 56.42% in Q4 2025, representing a 1.258 increase [2]. The renminbi held 1.99% of reserves in Q1 2026, compared to 1.95% in Q4 2025, indicating a 2.051 change over the period [2]. While systemic de-dollarization remains speculative, specific bilateral trade shifts are occurring due to sanctions, with the New Delhi summit final declaration scheduled for 12–13 September 2026 [2].