Amman, Jan. 30 (Petra) — The Central Bank of Jordan (CBJ) has decided to maintain the current interest rates on its monetary policy instruments, following a comprehensive assessment of both domestic and global economic conditions. This decision was made during the first meeting of the year by the Open Market Operations Committee.
The CBJ’s move comes after evaluating recent developments in the national economy, banking sector, and monetary policy, alongside regional and international economic dynamics. The decision underscores the bank’s confidence in the resilience of Jordan’s financial system.
Economic indicators continue to reflect the strength of the Jordanian banking sector, underpinned by robust foreign reserves, which now stand at $20.8 billion. This reserve level is sufficient to cover the country’s imports of goods and services for approximately 8.1 months. Additionally, the country’s inflation rate remained stable at 1.56% in 2023, signaling a conducive environment for overall economic stability.
Banking sector performance remained strong throughout 2023, with total deposits rising by JD 3 billion, reflecting a growth rate of 6.8% compared to the previous year, bringing total deposits in the banking system to JD 46.7 billion. Meanwhile, credit facilities extended by banks increased by JD 1.4 billion, or 4.2%, reaching JD 34.8 billion, highlighting the sector’s ongoing role in financing economic activities and investments.
Despite ongoing regional instability, Jordan’s external economic indicators showed positive trends. Workers’ remittances grew by 2.8% in 2023, reaching $3.6 billion, while tourism revenue amounted to $7.2 billion, despite a 2.3% decline from the previous year. The trade deficit also narrowed by 1.4% over the first 11 months of 2023, driven by a 5.2% increase in total exports during the same period. Inflows of foreign direct investment (FDI) totaled JD 906 million for the first three quarters of 2023.
The Jordanian economy recorded real GDP growth of 2.4% in 2023, with projections indicating an acceleration to 2.5% in 2024, according to estimates from the Central Bank. This growth reflects the ongoing recovery of the national economy, supported by sound monetary policies, structural reforms, and government measures aimed at improving productivity, enhancing competitiveness, and attracting investment.
The Central Bank reiterated its commitment to closely monitoring both local and international economic, financial, and monetary developments. It emphasized that it will take necessary actions to ensure monetary and financial stability in the Kingdom.
Additionally, the CBJ will continue to support policies fostering sustainable financing, financial inclusion, digital transformation, and innovation to align with the Kingdom’s economic modernization and development objectives.
//Petra// RZ
30/01/2025 11:34:11
