Kingdom of Jordan discussing the transformations of reserves

The mess of gold price leaded by Japan

Increase the reserves of gold enhances the power of the dinar
Amman – fetal sword – called financial experts, the Central Bank of Jordan to replace part of its reserves of foreign currencies with gold to achieve better returns from the returns and give a logical evaluation of the Jordanian dinar.
Although these experts confirmed for »Opinion» that now is not appropriate to buy gold due to high oil prices to historic levels, but they stressed that the increase of gold reserves Kingdom reinforces the power of the Jordanian dinar against foreign currencies.
Increased in recent years the demands of international economists to return to the system of linking the global economy with gold, and the most prominent of these was Robert Zoellick, World Bank President, who stressed that the move will help stabilize the currency, reducing inflationary expectations in financial markets.
The Group of Twenty Zoellick called on to examine the possibility of using gold as a reference point for the international market expectations about inflation and deflation, the value of currencies, saying that despite the fact that gold is one of the old currencies but it is still used today as an asset to a financial alternative.
The captain said, jewelers, jewelery, Osama ultimate goal has to replace the Central Bank of Jordan is part of the gold reserves of foreign currencies to achieve better returns than the returns on its reserves of foreign currencies.
The ultimate goal has the opportunity to replace part of the central gold reserves instead of foreign currency reserve is the best in the Central Bank and achieve a safe haven for the local currency.
According to recent statistics issued by the Central Bank of Jordan increased the value of gold reserves during the first month of the current year by 12%, and $ 53.3 million dinars to a record 505.4 million dinars.
The increase in the value of gold reserves by rising gold prices as the global amount of these reserves Balounsat stable at 410,363 ounces since 2009.
And the level of 505.4 million dinars is the second highest level of historic local reserves of gold after the level recorded at the end of last August of $ 528.1 million dinars, rising gold prices to record levels at the time of history.
He cited the captain owners jewelers, the experience of some of the world to strengthen its reserves of gold, saying that America has the largest reserves in the world of gold, and some countries that have taken place by the wars have resorted to increasing their reserves of gold, such as Iraq and Iran to keep its imports and exports.
He noted that the purchasing power of the dollar declined during the last period due to increased pumping liquidity, which affected the dinar as it relates to the U.S. dollar, noting that any paper currency vulnerable to collapse in the event of any emergency, indicating that the euro dropped prices during the last period because of the events witnessed by the as well as Greece’s debt crisis.
The ultimate goal has suggested that the Central Bank of Jordan to replace part of its reserves of foreign currencies to gold by 10 percent to almost 25%, indicating that the price at the moment gold is not the most appropriate, adding that gold could rise and fall in prices.
For his part, CEO of Noor Financial Investment, and serious Makhamra, the assessment of the local currency with gold and giving the best logical evaluation of association with some foreign currencies.
He pointed out that Makhamra strengthen central bank reserves of gold enhances the power of the Jordanian dinar against foreign currencies, adding that foreign currencies do not prepare a long-term safe haven.
A financial expert, Samer Sinokrot he usually resorted to gold in the difficult economic conditions, which is considered as a safe haven, adding that gold has proven its ability over the years to maintain its value Kuaa savings.
He noted that the price of gold Sinokrot now reached its highest level, explaining that almost purchased on current prices is risky.
He opposed an economic expert who preferred anonymity, the idea of ​​replacing gold reserves of foreign currency as «not applicable».
The expert added that linking the economy with gold will lead to a contraction in growth rates, pointing to the great disparity between the production of gold globally and between the volume of international trade.