Global Policy Forum commences at Dead Sea with a focus on financial inclusion

AMMAN — Under the patronage of His Majesty King Abdullah, the Alliance for Financial Inclusion (AFI)’s 2022 Global Policy Forum (GPF) kicked off on Wednesday at the Dead Sea.

Titled “Moving forward together: Towards a resilient, inclusive and sustainable future”, the forum, organised by the Central Bank of Jordan (CBJ), highlighted Jordan’s most important fiscal initiatives, which strive to promote innovation and financial inclusion.

Speaking during the event, CBJ Governor Adel Sharkas said that financial strength indicators issued for the first half of 2022 showed that the non-performing debt to total debt ratio decreased by 0.4 per cent. The ratio reached 4.6 per cent, compared with 5 per cent at the end of 2021, he said.

Sharkas noted that the CBJ is working closely with its public and private sector partners to launch a National Payments Strategy for the next three years (2023-2025) to develop clear policies capable of supporting the demand for digital payments in Jordan, while addressing its related challenges.

The CBJ is working to launch the national strategy for financial inclusion (2023-2025) by the end of this year, said Sharkas, adding that the strategy will incorporate the Kingdom’s vision for the responsible and sustainable use of financial services and products across all sectors of society.

Sharkas stressed that the forum is an important part of Jordan’s plan to promote financial inclusion and make financial services more broadly accessible to both individuals and the commercial sector.

According to Sharkas, the government was able to successfully complete four reviews within the economic reform programme (2020-2024), in cooperation with the International Monetary Fund (IMF), despite the extenuating circumstances of the pandemic.

He indicated that tourism sector’s recovery process has exceeded expectations, achieving a growth of 204.5 per cent during the first seven months of 2022, compared with a decline of 18.3 per cent for the same period in 2021. The sector is expected to return to near pre-pandemic earnings by the end of this year, said Sharkas.

Jordanian exports increased by 43.4 per cent during the first half of 2022, compared with 19.6 per cent growth in the same period in 2021. Further, remittances from Jordanians working abroad increased by 0.8 per cent during the first seven months of this year, said Sharkas.

The CBJ’s foreign exchange reserves currently exceed $16.5 billion, sufficiently covering eight months of the Kingdom’s import demand, according to Sharkas.

“Despite the significant rise in inflation rates recorded by many countries in the region and the world, the Jordanian economy was able to maintain an inflation rate within acceptable limits, measuring 3.6 per cent during the first seven months of 2022,” Sharkas added. 

According to Sharkas, the CBJ is currently working on developing a Green Finance strategy, in cooperation with the World Bank and other partners, which will focus on financing “green” projects as well as incorporating climate change risks into banks’ business models.

Prime Minister Bisher Al Khasawneh said that GDP growth measured 2.2 per cent in 2021, noting that progress is expected to continue in 2022, as production levels in the most affected sectors are approaching pre-pandemic levels despite continued uncertainty in the global economy.

“Within the Economic Modernisation Vision, the government is committed to pursuing the development of the market and financial services sector, as it is the basis on which to enable economic growth and improve citizens’ access to finance,” the prime minister said during his remarks.

Khasawneh noted that financial inclusion is an essential pillar for inclusive and sustainable growth. 

“Incorporating those excluded from financial institutions into the formal economy would reduce poverty, and make individuals, especially those with low incomes, less vulnerable to financial shocks, improving living conditions for all,” he said.

“We are looking forward to hearing applicable recommendations and proposals from this forum that would advance financial inclusion and improve opportunities for individuals and targeted groups,” Khasawneh said.