We are keen to maintain monetary stability

Madaba – Al-Dustour – Ahmed Al-Harrawi

The Governor of the Central Bank, Dr. Adel Al-Sharkas, confirmed that the Central Bank of Jordan is keen to implement a monetary policy that ensures the preservation of monetary stability in the Kingdom, stressing that this stability is the basis for maintaining overall economic stability.

The Circassians indicated during a meeting held today, Monday, at Al-Zaytoonah University, in the presence of His Excellency Dr. Abdullah Al-Nsour, Chairman of the Board of Trustees of Al-Zaytoonah University of Jordan, the President of the University, Professor Dr. Muhammad Al-Majali, the Chairman of the University’s Board of Directors, Engineer Iyad Al-Qurm, the deans of the faculties and members of the two teaching staff at the Faculty of Business, that the inflationary wave What the world was exposed to during the past two years was unique, as several factors contributed to it on both the demand and supply sides, most notably the imbalance in global supply chains that coincided with the recovery of demand in the wake of the Corona pandemic, and the imbalances in labor markets and the accompanying growth in Real wages, the rise in energy and food prices, in addition to the rise in shipping and insurance costs as a result of the Red Sea disturbances since the fourth quarter of last year, all of which contributed to inflation rising above target levels for a longer period than expected.

The Circassian pointed out that this inflationary wave required central banks to deal with it firmly by following monetary policies that were the most stringent and rapid in raising interest rates during the last two decades, noting that despite the trend of the inflation rate towards decline in many countries, the central banks It is realized that leniency in monetary policy before certainty of the sustainability of the decline in inflation rates will carry with it fundamental consequences and risks for the economy, which has necessitated dealing with the recent turn in inflation with caution and waiting to reduce interest rates by most central banks.

At the level of monetary policy locally, the Circassians stressed that the tight monetary policy pursued by the Central Bank over the past two years and its credibility in maintaining harmony between local interest rates and regional and international interest rates had a role in enhancing the credibility of monetary policy and confidence in the national economy, and maintaining monetary stability. The strength of the dinar, in particular, is confirmed by the stability of foreign reserves at the Central Bank at high levels, which currently amount to approximately 19 billion dollars, sufficient to cover more than 8 months of the Kingdom’s imports of goods and services, and the continued decline in the dollarization rate to reach 17.9% in The end of April 2024, compared to rates exceeding 20% ​​before the repercussions of the Corona pandemic, in addition to contributing to keeping the inflation rate, which reached 1.7% in May 2024, within appropriate limits, and in a way that stimulates the savings and investment environment in the Kingdom.

The Circassians stated that the flexibility enjoyed by the national economy, the commitment to quantitative and structural economic reforms, and the possession of a comprehensive and ambitious economic vision for the coming years through the economic modernization vision 2023-2033 would put Jordan on an upward growth path, and that the economy enjoys positive strengths, including strong demand. Our exports of goods and services, including non-traditional ones, and reliable support from international donors, played a major role in enabling the economy to deal flexibly with the existing challenges, and achieving economic growth of 2.9% on average during the last three years, indicating that Jordan has a banking system. Developed, resilient, and able to contribute effectively to financing economic activity.

At the end of the meeting, which was moderated by Professor Dr. Saad Ghaleb, Dean of the College of Business, all inquiries and questions raised were answered.