AMMAN — The Central Bank of Jordan (CBJ) on Thursday decided to increase the interest rate on its various monetary policy instruments by 50 basis points and 75 basis points on overnight window deposits, effective as of Sunday, June 19.

 

The CBJ’s open market operations committee took the decision to maintain the objective of achieving monetary stability in the Kingdom, maintain the attractiveness of the Jordanian dinar as a savings tool, and enhance the deposits that are considered a major pillar of securing funding needs for national economy, the Jordan News Agency, Petra, reported citing a CBJ statement. 

 

The decision was taken in line with the regional and international monetary markets' interest rates changes, to address the inflation pressures amid the rising global inflation rates, the bank said.

 

To guarantee the availability of appropriate financing for vital sectors in the economy, SMEs and craftspeople, the CBJ decided to keep the refinancing JD1.3-billion programme’s interest rates unchanged to stand at 1 per cent for projects located in Amman and 0.5 per cent for projects located in other governorates, according to the statement.

 

The amount of funds available under this programme, targeting 10 sectors, is about JD600 million, with a loan term of 10 years.

 

The committee also decided to extend a JD700-million programme aimed to support SMEs, professionals and craftspeople and importers of basic commodities for an additional three months, until the end of next September.

 

The committee also decided to maintain the interest rate at no more than 2 per cent, with loans to be repaid in 54 months, including a grace period of up to 12 months.

 

The amount of funds available under this programme is currently about JD150 million.

 

The Kingdom’s foreign currency reserves currently stand at $17.5 billion, which covers the Kingdom’s imports for 9.1 months. 

 

Bank deposits, by the end of April, continued to hike, recording an annual increase of 7.9 per cent, while credit facilities offered by banks showed an annual growth of 5.5 per cent, by the end of April.

 

Jordan's tourism revenues jumped by 255.1 per cent during the first four months of 2022, compared with the same period of 2021, while national exports increased by 43.1 per cent during the January-March period.

 

The remittances of Jordanians working abroad in the first third of 2022 went up by 1.5 per cent, at a time the inflation rate stood at 2.6 per cent in the first four months of this year.

 

The CBJ will continue to monitor local, regional and global economic developments, and will stand ready to act proactively to support monetary stability, the statement added.