Jordan’s Economy Stabilizes Amid Monetary and Financial Reforms
The Central Bank of Jordan (CBJ) has successfully maintained monetary and financial stability in the country, according to a recent report by the International Monetary Fund (IMF).
Monetary and Financial Stability
The CBJ’s efforts have helped contain inflation and maintain financial stability, with confidence in the dinar remaining strong. The bank’s net international reserves and net domestic assets targets were met by a considerable margin, despite higher policy rates and borrowing costs.
- Contained inflation
- Maintained financial stability
- Confidence in the dinar remains strong
Private Sector Credit Growth
However, private sector credit growth slowed markedly in 2023, from around 8% at the start of the year to below 2% by the end of the year. The CBJ remains committed to making necessary policy adjustments to safeguard monetary and financial stability.
- Private sector credit growth slowed to below 2%
- CBJ committed to making policy adjustments
Banking System Health
The banking system also remains healthy, with a well-above regulatory minimum capital adequacy ratio and relatively low non-performing loan ratios. The CBJ is continuing its close monitoring of banks’ asset quality, including by ensuring sustained application of prudent accounting, reporting, and provisioning standards.
- Well-above regulatory minimum capital adequacy ratio
- Relatively low non-performing loan ratios
- Close monitoring of banks’ asset quality
Strengthening Operations and Prudential Supervision
The report also highlighted the CBJ’s efforts to strengthen its operations and prudential supervision. The bank remains on track to implement the recommendations of the 2023 Financial System Stability Assessment (FSSA) and is working towards implementing the recommendations of a recent safeguards assessment.
IMF Spokesperson’s Comment
“The CBJ has demonstrated its commitment to maintaining monetary and financial stability in Jordan,” said an IMF spokesperson. “We believe that the bank’s efforts will help support economic growth and stability in the country.”
Overall, the report paints a positive picture of Jordan’s economy, with the CBJ playing a key role in maintaining stability and supporting growth.
- Positive outlook for Jordan’s economy
- CBJ plays a key role in maintaining stability and supporting growth