Until the IMF's prophesy becomes true

Al Rai’s Issam Qadamani said that for the prophecy of the International Monetary Fund (IMF) Mission Chief to Jordan Chris Jarvis for the Jordanian economy to restore its growth faster than other countries, there has to be proper financing instruments. 

The answer to this riddle, in light of pessimistic expectations for the economy to enter a recession for more than one year, was made by Jarvis himself who stressed the need to continue presenting financial support to the economy through the banking system, said the writer. 

The IMF chief also suggested granting the Central Bank of Jordan (CBJ) the flexibility necessary to take important procedures related to lowering interest rates, increasing liquidity and guaranteeing local companies’ access to financial support they need through the banking system, added the columnist. 

The safety and resilience of the banking sector under this crisis were decisive, especially that the sector is tasked with supporting the growth enhancers, said the writer, adding that it is a positive indicator for Jordan to have maintained the exchange rate of the dinar, which constitutes a confidence factor for investors and expatriates. 

The banking sector today is in its best levels, and if there are any hardships that should be taken into consideration, they are related to financial aspects pertaining to the budget deficit that will increase and affect the financial stability, said the columnist. 

The most important message by the government is its commitment to domestic and foreign debts, where the CBJ, since the beginning of the COVID-19 crisis, announced that it has sufficient reserves of foreign currencies to pay for imports for periods that equal or even exceed the international standards, said Qadamani.