CBJ cuts banks’ compulsory reserves by 2pct to inject JD550mln into economy

The Central Bank of Jordan (CBJ) on Sunday announced that it is cutting commercial banks compulsory reserves by 2 percent from 7 to 5 percent, among other measures aimed at injecting JD550 million into the economy amidst the coronavirus crisis.The ban…

The Central Bank of Jordan (CBJ) on Sunday announced that it is cutting commercial banks compulsory reserves by 2 percent from 7 to 5 percent, among other measures aimed at injecting JD550 million into the economy amidst the coronavirus crisis.

The bank decided to allow banks to restructure loans and delay payments for individuals and companies, especially medium and small enterprises affected by the negative repercussions of the virus (COVID-19).

CBJ Governor Zyad Fariz told Petra that the Kingdom's foreign reserves amount to JOD14 billion, enough to cover imports for more than 7 months.

He added that the decrease in oil prices will reflect positively on the Kingdom's imports and increase the opportunity for export of the local products, noting that the current account deficit is 3 percent of the gross domestic product, expected to reach between 4 to 5 percent of the GDP in light of the spread of the virus and global economic slowdown.

Source: Jordan News Agency