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Volume 5 Number 10 October 2019

Are Foreign Securities A Safe Haven For A Rentier Economy? An Acceptability Framework from Surveys' Perspectives


Authors: Mohammed Al-Homaidy
Pages: 227-237
DOI: doi.org/10.32861/ijefr.510.227.237
Abstract
Toward answering a complicated question of considering financial low-risk and fixed income instruments a safe haven for rentier economies, this study investigates the perspectives and perceptions of policy makers and non- policy makers of a rentier economy of Saudi Arabia, the largest oil producer, towards investing its financial reserves, initially, in the financial sector and, particularly fixed-income securities. Furthermore, the study explores experts’ views in regard to the optimal alternative to the investment in an financial sector. The outcomes of this research methods: interview and questionnaire, show that, despite the uncertainty and instability featured the present financial investment scene, manifested by the current economic slowdown and financial crisis: balance sheet recession,  market crunches and banking collapse in different parts of the world, the majority of the participants, trusted the financial sector as a shelter for the reserves of Saudi Arabia. They believed that government bonds and  T-bills are the most secure financial instruments to invest the accumulated revenues from oil returns. Thus, from the  participants responses, the financial investment sector represents the acceptability framework that can be a safe channel to maximize income for the national economy.



The Role of Central Bank of Jordan in Economic Development


Authors: Dr. Khaled Abdalla Moh’d AL-Tamimi ; Dr. Mohammad Sulieman Jaradat ; Dr. Ashraf Mahammad Al-Rjoub
Pages: 221-226
DOI: doi.org/10.32861/ijefr.510.221.226
Abstract
The main purpose of this research is to study and highlight that central bank of Jordan (CBJ) plays an important role in economic development. The objective of the financial organization shall be to keep up financial and money stability, to confirm the interchangeability of the Dinar, and to contribute in achieving the banking and money stability within the Kingdom likewise as promoting sustained economic process in accordance with the overall economic policies of the government. To achieve the above- mentioned objectives, CBJ assumes many tasks portrayed in drawing and implementing the financial policy within the Kingdom through an integrated system of monetary policy instruments, setting a evaluation policy of the Dinar compatible with the Jordanian economy, maintaining and managing the Kingdom’s reserves of gold and foreign currencies, regulation credit within the Jordanian economy so as to realize financial and money stability likewise as comprehensive economic process, and issue and regulation bank notes and coins. Subsequently, the central bank plays necessary role within the economic resource allocation of the country. The banking industry may be a major issue that affects the organization of social and economic life cycle within the economies of the planet. it is thought about as associate degree indicator of economic and social growing.. Also, developed financial set up ought to be characterized by the existence of a contemporary and complicated banking industry that contributes to achieving economic balance. It conjointly encourages domestic and foreign investment through the banking system’s ability to states. The aim of the banking industry is to draw in savings domestically and abroad, and direct those savings into productive investment. As a result, this contributes to the accomplishment of economic and social development method, and conjointly facilitates investment activity.