Sharkas: CBJ monetary policy bolstered confidence in economy, dinar

Amman: Central Bank of Jordan (CBJ) Governor Adel Sharkas said Saturday that the bank's monetary policy over the past two years and keeping harmony between local, regional and international interest rates bolstered confidence in the national economy and maintained monetary stability and a strong dinar. The monetary policy has paid off amidst global and regional challenges, as this confidence was translated into a continued decline in the dollarization rates, reaching 17.9 percent in late 2023, compared to over 20 percent before the Covid pandemic repercussions, he told a panel discussion on "Monetary Policy as a Tool of Economic Stability," which was held recently by the Jordan Economic Forum (JEF). Sharkas said CBJ foreign reserves hit record levels, currently standing at 18.2 billion, enough to cover 8 months the Kingdom's imports of goods and services. Added to that is keeping inflation rates, which recorded 2.1 percent last year and dropped to 2 percent in January this year after it reached 4.2 percent in 2022, within suitable limits in proportion to economic activity, and in a manner to stimulate savings and the investment environment, he said. Confidence in the national economy in general and in the dinar as a safe currency for savings, as well as the strength and durability of the banking sector, were among factors that led deposits in banks to soar by JD1.6 billion by the end of last year, recording about JD43.7 billion, Sharkas told the JEF, a platform that monitors key macro and microeconomic indicators impacting Jordan's economic competitiveness and growth. He pointed out that despite tightening monetary policy and raising interest rates, credit facilities grew by 2.6 percent to JD838 million, bringing their balance to about JD33.4 billion in late 2023. The Central Bank chief said the bank's latest decision to raise interest rates was to maintain monetary stability and ease inflationary pressures. He also cited financial and structural reforms, pointing to the successful completion of the sixth a nd seventh reviews with the International Monetary Fund, which underlined Jordan's commitment to implementing economic reforms. Source: Jordan News Agency