AMMAN – On Saturday, Adel Al-Sharkas, Governor of the
Central Bank of Jordan (CBJ), emphasized that the CBJ has successfully established the
foundations of monetary stability in the Kingdom over the last two decades,
despite numerous challenges, such as the global financial crisis in 2008, the
Arab Spring in 2011, the
COVID-19 pandemic in 2020, and, most recently, the
global inflation surge.
اضافة اعلان
During a
Jordanian Economic Forum (JEF) session, Sharkas stated
that economic policies, particularly monetary policy, are intended to keep the
economy on pace, Al-Mamlaka TV reported.
In response to the recent surge in inflation, the CBJ decided to
hike interest rates in order to maintain monetary stability and reduce
inflationary pressures.
The results of the CBJ's cautious monetary policies during the
last two years, together with its credibility in preserving consistency between
local, regional, and international interest rates, have considerably
contributed to increased trust in the national economy. This confidence is
shown in the steady fall in the dollarization rate, expected to reach 17.9
percent by the end of 2023, down from rates of over 20 percent before the
COVID-19 outbreak.
In addition to maintaining record levels of foreign reserves,
which currently total $18.2 billion and are enough to cover eight months of the
Kingdom's imports of goods and services, the CBJ has prioritized monetary
stability.
The inflation rate, which was 2.1 percent in 2023, fell to 2
percent in January of this year after reaching 4.2 percent in 2022. These rates
are appropriate for economic activity, promoting the Kingdom's savings and
investment environment.
Despite tight monetary policy and rising interest rates, credit
facilities increased by 2.6 percent, equivalent to JD838 million, bringing the
total to over JD33.4 billion by the end of 2023.
Jordan's monetary stability has been a foundation for strong
economic progress in recent years, particularly in 2023. This achievement
occurred in the face of a fragile global environment and widespread
uncertainty. Notably, Jordan successfully completed its sixth and seventh
IMF evaluations, indicating its commitment to undertaking economic reforms.
Furthermore, the government has switched to a new economic
program with the IMF, allowing it to continue its economic reform plan
uninterrupted. Various credit rating organizations have acknowledged Jordan's
solid credit outlook. Furthermore, the Kingdom has been removed from the list
of countries under investigation in anti-money laundering and counter-terrorism
financing in 2023.
Sharkas emphasized that 2023 was not only marked by significant
achievements, but also by positive performance across several economic
indicators. Tourism revenue stands out among these indicators. The projections
indicate that the economy will grow by 2.6 percent in 2023, with expectations
of stability at this rate in 2024. These projections assume that the
repercussions of the war in Gaza will not worsen and that tensions in the
Red Sea will not escalate, both of which impact shipping and insurance costs.
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