The leaders of two players of global wheat market Egypt and Russia indicated they are planning to use local currency in trade.
Egypt is one of the primary wheat importers in the world. The country imports most of its wheat requirement from Russia. Recently interviewed in Egypt, Russian Prime Minister Vladimir Putin and Egypt President Abdulfettah el-Sisi indicated that they will use local currency instead of dollar for trade. It is unclear how this decision of these two important players in global wheat market affects the wheat market. It is known that wheat trade is one of the main topics of Putin and Sisi interview.
Russian President Putin hopes to strengthen the relations with China, India, Turkey and Egypt against the economic sanctions of USA and EU. The decision of using local currency in trade is thought to be the respond of Russia to the economic sanctions of USA and EU.