Central Bank of Jordan Lowers Reserves to Infuse Liquidity to the Economy

To improve the country’s liquidity position, the Central Bank of Jordan cuts its compulsory reserve rates for commercial banks to 5%, from 7% previously.

This was done to potentially inject over JOD 500 million (USD 705 million) into the economy.

In efforts to help individual borrowers and ease losses incurred by private sector firms, Central Bank Governor, Zaid Fariz, stated that commercial banks were asked to delay payments of loan instalments by companies, and to reschedule retail loans without penalties to the customers.

While the International Monetary Fund forecasts 2.1% economic growth in 2020, country officials fear that the negative i...