CBJ Governor: Inflation within "reasonable" ranges, expected at 3.8pct by end of 2022

[15-06-2022 09:44 AM]

Ammon News - Governor of the Central Bank of Jordan (CBJ) Adel Sharkas predicted that the Kingdom's inflation rate would reach 3.8 percent by the end of 2022, saying current inflation rates remain within "reasonable ranges" despite rising worldwide inflation.

Sharkas told a meeting with the Board of Directors of the Amman Chamber of Commerce (ACC) on Tuesday that the Kingdom's inflation rate did not surpass 2.6 percent in the first four months of this year.

He also revealed that the CBJ retains large foreign reserves, estimated at $18 billion, enough to finance the Kingdom's purchases of goods and services for more than 9 months. This amount, according to Sharkas, is more than three times the global standard of three months.

Monetary stability is a key priority of the Central Bank's monetary policy, according to Sharkas, who also revealed that private sector deposits, held by both individuals and corporates, are currently north of JD40 billion.

The local banking system, according to the CBJ governor, is resilient and maintains strong financial position, allowing it to weather shocks, manage risks efficiently and overcome the pandemic's impacts.

Sharkas urged the ACC to produce a scientific analysis and clear data-backed proposals for the commercial sector, noting that the Central Bank does not deal with individuals or businesses directly, but rather through local bank-managed financing schemes that it sponsors.

ACC President Khalil Haj Tawfiq, for his part, emphasized that the Central Bank is a "safety valve" for the national economy and that the bank's engagement and consultation with the private sector is a step toward deepening the relationship between the public and private sectors.

Tawfiq provided an overview of the local market and the obstacles that merchants face, citing a lack of liquidity, economic stagnation and consumer purchasing power loss as examples.

He called for increasing basic commodity traders' financing to more than JD1 million to allow them to import new merchandise and replenish local stocks.

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