Amman, Dec. 12 (Petra)-- Firas Sultan, the representative of the financial and banking sector at the Jordan Chamber of Commerce, affirmed that the significant rise in Jordan’s foreign currency reserves held by the Central Bank underscores the strength and resilience of the national economy and its ability to overcome challenges.
He praised the Central Bank’s decision to reduce the main interest rate and the rates on various monetary policy instruments by 25 basis points, effective next Sunday.
Foreign currency reserves at the Central Bank reached $24.6 billion by the end of November, a level sufficient to cover the Kingdom’s imports of goods and services for 8.8 months.
In a statement released on Friday, Sultan noted that foreign currency reserves are one of the key economic indicators reflecting the robustness of the national economy, its ability to face challenges, meet obligations, and the soundness of the Central Bank’s monetary policy in adapting to local and global developments.
He stressed that the reserves reaching unprecedented levels indicate that the national economy is moving in the right direction, driven by a set of positive economic indicators achieved since the beginning of the year particularly growth in tourism revenue, exports, and remittances from Jordanians working abroad.
Sultan added that these reserves support trade activity in the local market and provide various economic sectors with financial stability for import and export operations. They also send a strong message to businesses and investors about the economy’s capacity to continue growing and achieving positive results.
He explained that maintaining adequate foreign currency reserves enhances confidence in the Central Bank’s monetary policies and strengthens the appeal of the national economy by ensuring the ability to meet domestic market needs for imports.
Sultan, who also serves as the second vice president of the Jordan Chamber of Commerce, noted that the Central Bank has succeeded through prudent policies in building reserves that cover long periods of imports. This, he said, will bolster the investment and business environment in the Kingdom and support monetary stability.
Foreign currency reserves are defined as deposits and bonds in foreign currencies held by central banks. The U.S. dollar is considered the world’s primary reserve currency, but reserves also include deposits in euros, British pounds, and Japanese yen. Such reserves help support the value of the local currency and enable countries to meet outstanding debt obligations.
//Petra// MF
