VIDEO: Thousands Of Jordanians Suffer Financial Losses
Oct 6, 2008 | Published under: Featured, Multimedia, News & Analysis
Jordanians crowd the branch of a currency-trading company in Irbid. Photo Courtesy: Petra
7iber - September saw the collapse of several currency-trading offices and financial companies dealing with foreign investments, who upon postponing the distribution of their clients’ monthly earnings were seen to be preparing to declare bankruptcy. The move sparked charges from the Amman prosecutor general as a Royal Decree was passed endorsing regulations governing companies dealing in foreign markets.
With thousands of Jordanians as clients, experts estimate that around JD1 billion may be invested in the Kingdom’s various foreign investment firms dealing with the trading of foreign currency. Essentially, clients are told to invest a certain amount of money in exchange for, perhaps, unrealistic returns every month in the form of interest, some going as high as 25% in “guaranteed” profits.
Such companies have operated for years as entities registered and licensed through municipalities or commercial chambers, and have essentially gone unregulated and unmonitored by the Central Bank of Jordan or the Amman Stock Exchange (ASE). A new temporary law has attempted to force these companies to be licensed from the recently established Foreign Exchange Regulatory Commission, with new requirements that include 30% of the firm’s capital being deposited in the Central Bank of Jordan along with a license fee of JD500,000.
Suffice to say, it has been the average Jordanian, lured by the chance to have a much-needed supplementary income who has taken the brunt of September’s unfortunate events. Many citizens have financed their investment by borrowing money from banks, friends and family members. Due to the current legal proceedings, these clients may have to waits months before seeing any sort of financial recovery.
Local Web TV site, Jordan Days, went out to talk with various Jordanians who have been directly affected by the current financial crisis:
Video Courtesy of www.jordandays.tv
7i·ber: [he-bur] - noun, 1. Arabic for ink 2. Citizen journalism 3. Digital ink 4. Jordanian 5. People-powered 6. Youth-powered 7. Informative 8. A 
3 Comment(s)
By Muna on Oct 6, 2008 | Reply
that’s’ so sad. everyone is screwing the Jordanians. Their government, the business establishment.
from poor public health care, to not-fit-animal-consumption foods dumped on the Jordanian markets, to repression, to taxation without representation, to loss of opportunity, to …and now this. I think much of the fraud took place under the watchfull eyes of influential people in jordan. like enything else around here, so long as they take their cut, everything goes. and I bet after justice takes its course, a few minions will go to jail, but the Big Bastards will get off the hook, with their wealth intact.
I think the toughest job in the world is simply being Jordanian. You really have no protection from anyone. And all the talk about Jordan being an osasis of security….well, it’s true since the wealthy and regime thugs are safe and secure from us.
And they wonder why we frown.
By Zait O Za3tar on Oct 6, 2008 | Reply
We need to stop being reactive to problems. Although I admit that with the number of problems we face, it is hard not to be in “firefighting” mode all the time.
It is really depressing.
By Naseem Tarawnah on Oct 7, 2008 | Reply
Zait O Za3tar: I agree, Jordan should be taking pre-emptive action instead of just reacting.