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National economy on path to recovery from pandemic repercussions — CBJ governor

By JT - May 11,2022 - Last updated at May 11,2022

AMMAN — The Kingdom’s economy is moving steadily towards recovery from the impacts of the COVID pandemic, Governor of the Central Bank of Jordan (CBJ) Adel Sharkas said on Tuesday, citing the positive performance of several  macroeconomic indicators, particularly those related to the monetary and external sector, which helped the national economy register a 2.2-per cent growth in 2021, exceeding earlier estimates.

During a meeting with heads and members of banks’ boards of directors, Sharkas highlighted that the economic growth is expected to grow 2.4 per cent this year, driven by the continued improvement of the performance of several economic indicators, the Jordan News Agency, Petra, reported.

The Kingdom’s tourism revenues jumped by 251.4 per cent in the first quarter of 2022, while remittances increased  by 16 per cent in the first two months of the year, and national exports rose by 37.2 per cent in the first two months, he noted.

The inflation rate is expected to reach 3 per cent by the end of the year, he said, noting that the impact of the global inflation rate on the local economy is still limited.

He reviewed the main global and local economic developments, notably those related to monetary and banking conditions, while also highlighting the CBJ’s priorities during the next phase.

Jordan has managed to implement several economic reforms in a single decade, which helped in gaining the international community’s confidence, he said, noting that the stabilisation of the Kingdom’s credit rating at a “stable outlook demonstrates the resilience of the national economy”.

He also highlighted the CBJ’s management of monetary policy, notably its keenness to balance the requirements of monetary stability, and provide financing channels on concessional terms to support growth, which was the goal behind the launch of the JD2-billion concessional financing programmes.

He also emphasised the CBJ’s commitment to a fixed exchange rate from Jordanian dinar to US dollar, and keeping it at its current level, noting that this is supported by a high foreign reserve balance of $18.0 billion

He also reviewed the bank’s agenda for the next stage that focuses on several priorities, notably the requirement of all financing companies to be licensed by the Central Bank under the microfinance company system, which will come into effect by the end of this month.

The priorities also move towards green funding, enhancing financial inclusion, expansion of digitisation, as well as the development of the legislative framework to regulate the banking sector, he added. 

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