Central Bank governor, JBA talk interest rates, investment

AMMAN — Governor of the Central Bank of Jordan (CBJ) Adel Sharkas and members of the Jordanian Businessmen Association (JBA) on Tuesday discussed issues of concern to the private sector.

The CBJ has worked to lower interest rates to 3.5 per cent in an effort to compete with neighbouring countries, Sharkas said, adding that the diversity of financing sources with their competitive advantages have helped lower interest rates.

He noted that foreign currency reserves have reached $18 billion, which is “a sign of strength” for the Jordanian dinar, according to the Jordan News Agency, Petra.

Jordanians financial culture has developed over the past two years with e-payments reaching JD 14 billion, he added.

JBA President Hamdi Al Tabba’a highlighted the importance of improving cooperation between the public and private sectors. Tabba’a also praised the CBJ’s role in setting monetary policy that helps maintain the Jordanian dinar’s exchange rates. 

However, interest rates remain high, holding back investment at a time when private businesses are already struggling to attract financing due to the pandemic-related economic downturn, he said.

Participants also discussed ways to improve tools that the bank uses to calculate monthly tourism income. JBA representatives also expressed concern about an expected interest rate increase.