'Greater demand for dinar expected in December'

AMMAN — Demand for the dinar is expected to increase during December's holiday season, a sector insider said Wednesday.

Jordanian Exchange Association President Alaa Eddine Diraniyeh explained that remittances from Jordanian expatriates, especially those in Arab Gulf countries, as well as the activities of local fruit and vegetable importers and the local market in general, is generating demand for the dinar.

Meanwhile, he reiterated the association's repeated warnings to foreign currency traders to be wary of the euro's weak performance on the international market, noting that people's desire for "quick revenues" sometimes prompts them to buy large amounts of a certain currency without studying the market.

"Based on our observations and studies of the financial market, our advice for those seeking to buy large amounts of any currency is to slow down," Diraniyeh said, adding that sudden political or economic developments may affect the performance of foreign currencies.

As the US Federal Reserve is expected to increase its key interest rate from the current near-zero level in December, Diraniyeh noted that gold prices and the value of the euro are expected to drop further.

The Jordanian dinar's link to the dollar will cause a "minimal, but positive" effect on the national economy, he said, with the value of Jordan's euro-dominated loans forecast to drop in dinar terms as well.