Central Banks and the Question of Sustainability in MENA Monarchies

This paper reconsiders the modern central banking objective of price stability, particularly within MENA region monarchies. It argues that fixed exchange rate regimes, have effectively maintained price stability, rendering Central Bank Independence irrelevant in these contexts. The analysis suggests that central banks in MENA monarchies should broaden their mandates to incorporate Sustainable Development Goals such as climate action, advocating for a shift toward Central Bank Sustainability Commitment (CBSC). The historical roles of central banks in economic development and crisis management support this expanded mandate. The paper recommends that central banks in the MENA Monarchies should support sustainable development through the reallocation of foreign reserves, the implementation of capital controls, and proactive credit allocation to achieve long term sustainable economic development.