The gold and foreign exchange reserves of the Arab countries cover imports of 16.5 months

Revealed at the Arab Economic Fund, Arab countries have about $ 2 billion in gold reserves and currencies currently covering about 16.5 months of imports, calling the level of these reserves "good" .
The Fund underscored the benefits that Arab countries derive from the diversification of their gold and foreign exchange reserves, noting that this helps to reduce the risks associated with fluctuations in exchange and interest rates and is distributed to the components of the economy. official reserve of the State.
Abdul Rahman Al-Humaidi, chief executive of the Fund, said the Arab oil countries were taking advantage of rising world oil prices to fuel their foreign exchange reserves to protect the fixed exchange rate systems adopted by these countries. fixing their currency against the dollar.
He added that the other Arab countries enjoyed a comparative advantage in the production of some commodities, such as gold, phosphate and chromium, as well as high prices, in order to build assets. in foreign exchange thanks to fluctuations in flexible exchange rates.
Regarding the dollar pegging of most Arab currencies over the coming period in the light of expected economic changes, Al-Humaidi explained that most Arab countries that adopt fixed exchange rate regimes are oil-exporting countries whose oil exports are denominated in dollars and, by their nature, open economies. The external world, characterized by the opening of the capital account to ensure the free transfer of funds to and from abroad, fixed exchange rate systems have helped a number of Arab countries achieve relatively stable growth rates and often moderate inflation rates.
He emphasized that the exchange rate anchor provided benefits to the economies of these countries in terms of reducing transaction costs, reducing foreign exchange risks and reducing the volatility caused by capital flows, underlining that the currency reserves of some of these countries guaranteed the stability of the current price system. Exchange and its credibility and stability of foreign exchange markets.
Al-Humaidi stressed that Arab economies, like other emerging economies, are open to the outside world through trade, investment and capital flows. However, financial and economic crises usually lead to slower growth rates. of the global economy, international trade and capital outflow from developing countries and economies. The emerging market and the sharp fluctuations in exchange rates and international interests, which in turn are reflected in the economic performance levels of developing countries in general, especially those with internal and external economic imbalances.
Regarding the willingness of Arab countries to cope with potential crises, he stressed that a large number of Arab countries had adopted in recent years economic reforms aimed at strengthening the resilience of these economies, in which the frameworks of the economic stability were supported, and directed towards the restoration of the internal and external balances, by reducing the budget deficits General, balance of payments.
He spoke of the adoption of a large number of strategies aimed at diversifying economic structures in order to increase the elasticity of their economic structures in the face of possible economic fluctuations in the markets. external, but also to some Arab countries to increase the degree of flexibility of exchange rates to absorb the impact of external economic fluctuations, as much of the impact mitigation. Potential for any international crisis and increased ability to cope with international economic fluctuations.
He stressed that Arab central banks and monetary institutions have been working in recent years to implement a number of reforms aimed at strengthening banking security and strengthening financial stability, by requiring banks to comply with international standards, the most important of which is the commitment to apply Basel III standards and prudential policy frameworks. The level of capital adequacy of Arab banks in relation to the levels defined in the framework of the Basel III reforms is set at 19%, compared to 10.5% for the planned level.
This is in addition to the ability of banks in a number of Arab countries to cope with liquidity needs, even under pressure and under favorable circumstances, which strengthens the ability of the banking sector to cope with any potential crisis.