أثر تقلبات أسعار الصرف في الأداء المالي للبنوك التجارية الأردنية

Abstract EN

This study aimed to show the impact of exchange rate fluctuations on the financial performance of Jordanian commercial banks.

To achieve the objective of the study and test its hypotheses, it is based on the annual reports of the Central Bank, the Amman Stock Exchange reports, and the quarterly bulletin of the Arab Markets Database for the period (2015_ 2020).

The descriptive analytical approach was used by calculating the arithmetic means and standard deviations to determine the nature of the relationship between the independent variables and dependent variables.

Simple and multiple regression analysis was used for the time-related cross-sectional data, and the most appropriate model among the pooled least squares (Pooled OLS), fixed effects (fixed effect) and random effects (Random Effect) were used.

Through out the study, statistical programs specialized in this field were used, to reach highly accurate results to prove, or reject the hypotheses.

The exchange rate fluctuations were measured through (the Euro, the Pound Sterling, the Japanese Yen) and the financial performance of commercial banks with its indicators (return on assets and return on equity).

Appropriate statistical analysis programs (panel data) were used to analyze and test the hypotheses.

The researcher reached several results, the most important of which are: that the independent variable (exchange rate fluctuations) through (the rate of change in the European Euro, the rate of change in the British Pound and the rate of change in the Japanese yen) had a contribution to affecting the financial performance (return on assets).

It was found that the rate of change in the Pound Sterling and the rate of change in the Japanese Yen contributed in influencing the financial performance (return on equity).

Some of the most important recommendations of this study including: trying to control the exchange rates by encouraging the productive sectors that directly support the Gross Domestic Product through the entry of international currency into Jordan, and also documenting the problems faced by banks from exchange rate fluctuations, their causes and ways to address them with special reports with the aim of accumulating experiences And increase the efficiency of management and workers in this field.