The AMF extends a new loan to the Kingdom of Morocco, with an amount of Arab Accounting Dinar 69.501 million, the equivalent of approximately USD 277 million, within the framework of the Structural Adjustment Facility in the Financial and Banking Sector

The AMF extended a new loan to the Kingdom of Morocco, with the amount of Arab Accounting Dinar 69.501 million, the equivalent of approximately USD 277 million, within the framework of the Structural Adjustment Facility in the Financial and Banking Sector. The agreement was signed on Friday, March 17, 2023, by HE Nadia Fettah, Minister of Economy and Finance, on behalf of the Kingdom of Morocco, and HE Dr. Abdulrahman A.

On this occasion, her Excellency the Moroccan Minister of Economy and Finance expressed her appreciation for the support provided by the AMF and the important role it plays in strengthening the ability of Arab countries to maintain economic stability and face different challenges. In turn, his Excellency the Director General of the AMF valued the efforts pursued by the Kingdom of Morocco to implement economic and structural reform programs, which largely contribute to improving the outlook for its credit rating by rating agencies, stressing the AMF keenness to continue the fruitful partnership with the Moroccan government to help the country address the different challenges in the most effective way.

The program supported by the aforementioned loan includes a number of pillars: strengthening the system of control and supervision of the financial and banking sector, promoting sustainable financing, enhancing financial inclusion, promoting financial innovation, and developing the legal framework governing the capital market.

Successful launch of cross-border payments of Iraqi pensioners’ salaries using “Buna” First transaction in Jordanian Dinar

The launch reaffirms Buna’s role in strengthening Arab economic ties and enhancing the experience of Iraqi pensioners residing in the Hashemite Kingdom of Jordan in receiving their salaries.
Buna aligns with the agenda of the Group of Twenty (G20) to improve cross-border payments.
Payments processed via Buna are characterized by efficiency, security, and lower cost.

Abu Dhabi, April 12, 2023: Buna, the cross-border payment system operated by Arab Regional Payments Clearing and Settlement Organization “ARPCSO”, owned by the Arab Monetary Fund, announced the success of the first cross-border payment for the pensions of Iraqi retirees residing in the Hashemite Kingdom of Jordan. The transaction also represented the first transfer In Jordanian dinars utilizing the Buna system.

Analyzing the Policy Trilemma’s Options

This paper aims to examine some policy options related to the trilemma using data for 17 Arab countries over the period 1970 to 2021. It employs the panel least square method to figure out the impact of policy options on GDP growth as a dependent variable along with other explanatory variables. Interestingly, the paper finds that one of the three policy trilemma options has a propensity to be effective.

Arab Monetary Fund issues a study on " Assessing the Association between the Global Carbon Futures Index and the Stock Markets' Return and Volatility in Selected Arab Countries"

The study discusses:

 

Reducing Emissions through Carbon Certificates Trading Innovation

Carbon Trading: A Key Strategy for Climate Change Goals

Arab Monetary Fund has released on Monday 27th of March 2023, a study titled "Assessing the association between the global carbon futures index and equity returns and volatility in selected Arab countries". The study aims to investigate the connection between the Global Carbon Futures Index (GCFI), stock returns, and volatility in four Arab stock exchanges: Bahrain, Saudi Arabia, Qatar, and the United Arab Emirates, by analyzing daily data between February 1, 2017, and October 30, 2022, using the generalized autoregressive conditional heterogeneity model (GARCH).

 

Arab Monetary Fund releases jointly with partners’ organizations, Regional Financing Arrangements (RFAs), a study on “Global efforts to fight the consequences of climate change: the role of Regional Financing Arrangements.”

The Arab Monetary Fund released jointly with partners’ organizations, Regional Financing Arrangements (RFAs), a study on “Global efforts to fight the consequences of climate change: the role of Regional Financing Arrangements”. This study provides an overview of steps taken by (RFAs) to incorporate climate considerations into their activities, covering the areas of economic monitoring, lending, capacity building, and internal policies and operations.

It aims to deepen the RFAs’ understanding of how their regional peers are approaching the emerging policy issue of climate change, and to stimulate collective reflections on how best to support members’ efforts to foster a more sustainable and resilient future.

 

The RFAs who participated in the study are: Arab Monetary Fund (AMF); the Association of Southeast Asian Nations (ASEAN)+3 Macroeconomic Research Office (AMRO), which is the macroeconomic surveillance unit of the ASEAN+3 region; the Eurasian Fund for Stabilization and Development (EFSD); the European Union’s Macro-Financial Assistance (MFA), which is managed by the European Commission; the European Stability Mechanism (ESM); and the Latin American Reserve Fund (FLAR).

 

The study is available on this link

The Arab Monetary Fund publishes a Guidance Note on “Sovereign Sustainable Instruments” for the Arab region

Provide clear definitions for ESG terms and activities at the national level

Maintain a coordinated approach in designing sustainable finance plans

Debt managers assess readiness factors for Sovereign Sustainable Instruments

Raise public awareness and capacity development across government entities

The Arab Monetary Fund (AMF) in cooperation with World Bank Group, and The Gulf Capital Market Association has issued today March 16th 2023, a Guidance Note on “Sovereign Sustainable Instruments for the Arab region”. The note is issued under the framework of the Fund's endeavours to promote awareness of the requirements for developing the green and sustainable agenda in the Arab region.

The guidance note aims to promote awareness of ESG investing in the sovereign debt asset class and how it pertains to sovereign issuers in the Arab region.  It also provides regional policymakers with an insight into these key developments, to help promote a supportive ecosphere for sustainable finance including the local capital markets and banking sectors.

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