Kingdom's inflation rate expected to reach 3.8% by end of 2022 — CBJ

AMMAN — Governor of the Central Bank of Jordan (CBJ) Adel Sharkas on Tuesday said the inflation rate in the Kingdom by the end of the year is expected to stand at 3.8 per cent.

Sharkas, during a meeting with the Board of Directors of the Amman Chamber of Commerce (ACC) on Tuesday, said that the Kingdom's inflation rate did not surpass 2.6 per cent in the first four months of this year, the Jordan News Agency, Petra, reported.

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 nine months, adding that this amount is more than three times the global standard of three months.

Monetary stability is a key priority of the CBJ's monetary policy, according to Sharkas, who also revealed that private sector deposits, held by both individuals and companies, currently stands at JD40 billion.

The CBJ governor said that the local banking system is resilient and maintains strong financial position, allowing it to absorb 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 bank does not deal with individuals or businesses directly, but rather through local bank-managed financing projects that it sponsors.

ACC President Khalil Haj Tawfiq stressed that the CBJ is a “safety valve” for the national economy and that the bank’s engagement and consultation with the private sector is a step towards deepening relations between the public and private sectors.

Hajj Tawfiq provided an overview of the local market and the obstacles that merchants face, citing lack of liquidity, economic stagnation and declining consumer purchasing power.

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