Firas Sultan, representative of the financial and banking sector at the Jordan Chamber of Commerce, affirmed that the significant increase in foreign currency reserves at the Central Bank of Jordan confirms the strength and resilience of the national economy and its ability to overcome difficulties.
He praised the bank's decision to cut the main interest rate and interest rates on various monetary policy instruments by 25 basis points, effective next Sunday.
Jordan’s foreign reserves reached $24.6 billion at the end of last November, a level that covers the kingdom’s imports of goods and services for 8.8 months.
Sultan noted in a statement on Friday that foreign currency reserves are an important economic indicator that reflects the strength of the national economy and its ability to face challenges and difficulties and meet obligations. It also reflects the prudence of the monetary policy followed by the Central Bank and its ability to keep pace with local and global changes.
He affirmed that the Kingdom's foreign currency reserves reaching unprecedented levels indicates that the national economy is on the right track, driven by a number of positive economic indicators achieved since the beginning of this year, particularly in terms of tourism revenue, exports, remittances from Jordanian workers abroad, and others.
He explained that this reserve of foreign currencies supports the activity of the trade sector in the local market and provides financial stability to the various economic sectors in terms of their import and export transactions, and sends a strong message to business owners and investors about the ability of the national economy to continue to grow and achieve positive results.
He explained that maintaining adequate foreign currency reserves enhances confidence in the monetary policies skillfully led by the Central Bank of Jordan and strengthens the attractiveness of the national economy and its ability to meet the local market’s import needs.
Sultan, who also serves as the second vice president of the Jordan Chamber of Commerce, pointed out that the Central Bank, through the prudent policies it implements, has been able to build foreign currency reserves that cover long periods of imports, which will enhance the investment and business environment in the Kingdom and support monetary stability.
Foreign reserves are defined as deposits and bonds in foreign currency held by central banks. The US dollar is considered the global reserve currency. They also include deposits in euros, British pounds, and Japanese yen, and contribute to supporting the local currency's value and paying the country's outstanding debts.