Central Bank aims to boost dinar appeal
The Jordanian Banks Association has decided not to pass on the 25 basis point increase in interest rates announced by the Central Bank on existing personal loans. This decision helps maintain monthly installment amounts for families, aiming to reduce their financial burden and support social stability. Despite the total consumer debt rising to 14.31 billion Jordanian dinars, this move reflects the strength and resilience of the banks' capital base, as well as their ability to adapt. It also helps preserve disposable income for consumer spending, which constitutes a significant portion of the Gross Domestic Product, while new loans continue to be priced according to market conditions. Additionally, the decision aligns with Jordan’s monetary policy goals of maintaining exchange rate stability and the attractiveness of the dinar, while supporting development initiatives through a range of financing projects.
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