CBJ governor says monetary policy strengthens trust in national economy

AMMAN — Governor of the Central Bank of Jordan (CBJ) Adel Sharkas affirmed that the monetary policy of the institution over the past two years and its credibility in maintaining alignment between local, regional and international interest rates have strengthened confidence in the national economy, and contributed to maintaining monetary stability and the strength of the Jordanian Dinar.

He said that the results of the monetary policy were achieved in a global and regional environment full of challenges, the Jordan News Agency, Petra, reported. 

Sharkas highlighted the continuous decline in the inflation rate, reaching 17.9 per cent at the end of 2023, compared to rates that exceeded 20 per cent before the repercussions of the COVID-19 pandemic.

Sharkas said that the foreign reserves at the CBJ have reached record levels, currently standing at 18.2 billion, which is sufficient to cover 8 months of the Kingdom's imports of goods and services.

"This comes alongside contributing to maintaining the inflation rate, which reached 2.1 per cent in 2023, and decreased to 2 per cent in January of 2024, after reaching 4.2 per cent in 2022, within suitable limits for economic activity, encouraging a saving and investment environment in the Kingdom."

The governor's remarks were made during a dialogue session titled "Monetary Policy as a Tool for Economic Stability", held by the Jordanian Economic Forum.

Sharkas pointed out that confidence in the economy in general, and in the dinar as a currency that attracts savings, as well as the strength and durability of the banking sector were among the factors that led to an increase in bank deposits at the end of 2023 by about JD1.6 billion, to record about JD43.7 billion.

He said that despite the tight monetary policy and interest rate hikes, credit facilities grew by 2.6 per cent, approximately JD838 million, reaching a balance of about JD33.4 billion at the end of 2023.