Jordan’s foreign exchange reserves stand at $17.5 billion, which cover the Kingdom’s imports for more than 7 months, said Central Bank of Jordan (CBJ) Governor Adel Sharkas. Speaking during the 8th conference for Jordanian businessmen abroad, which opened Saturday, Sharkas said that the inflation rate of 2.7 percent, which was recorded in the first seven months, will remain the same for the rest of the year. He said that the CBJ resorted to raising interest rates to ensure the stability of monetary policy and maintain a positive margin for the exchange rate of the Jordanian dinar against foreign currencies, as well as keep inflation rates at acceptable levels. Inflation is “an enemy” of investment and purchasing power of any economy, so central banks had to take strict decisions to combat inflation, Sharkas pointed out. The CBJ governor said that when the world began recovery from the repercussions of the Covid-19 pandemic, a political conflict broke out between Ukraine and Russia, increasing the supply imbalance in the production chains due to the persistent strain in the supply chains, and leading to unprecedented global inflation rates during the past year. Sharkas said the CBJ’s key goal is to maintain monetary stability, which is essential for overall investment, and the stability of the dinar’s exchange rate, expecting a drop in global interest rates in the second quarter of 2024 pending continued improvement in economic data in the United States. He explained that the 4.2 percent inflation rate recorded in Jordan last year was the lowest in the region, thanks to the CBJ’s monetary policy along with government measures to stabilize prices in the local market and ensure a 12-month stock of wheat, which spared the kingdom from rising global prices, which soared to $650 per ton. The CBJ chief said monetary stability is the basis for investment promotion, noting that the Central Bank has not overlooked economic growth as financing windows were created that included vital economic sectors to employ Jordanians. He said there are no restrictions on the movement of cash that was corroborated by the World Bank and the International Monetary Fund, which pointed to a strong and stable Jordanian banking system that is capable of absorbing shocks. For her part, Bank Al Etihad CEO Nadia Al Saeed said banks operating in the Kingdom would help provide the necessary financing to economic sectors and investment projects incorpoted in the national economic modernization vision, especially those related to strong and value-added industries that drive economic growth. Haitham Al Batikhi, Jordan Kuwait Bank CEO, said that banks in Jordan have the expertise, experts and consultants to offer facilities to investors and help overcome challenges to start businesses, pointing to his bank’s financing of key projects, mainly in renewable energy. Jordan Loan Guarantee Corporation Director General, Mohammed Al-Ja’fari spoke about the role of his company, which was established by the CBJ, in providing soft loan services for companied, especially small- and medium-sized enterprises. Jordanian investors residing abroad are taking part in the two-day conference, which aims to assess the current state of the Jordanian investment landscape, explore opportunities and potentials and discuss the role of Jordan’s financial and banking sector in the national economy.
Source: Jordan News Agency