Jordan raises overnight rate to bolster dinar

Jordanian capital, Jordan economy, Hashemite Kingdom

Jordanian capital, Jordan economy, Hashemite Kingdom

Jordan raised its overnight rate on dinar deposits on Monday by 75 basis points to 4 percent to bolster the currency at a time of regional uncertainty and domestic unrest.

It was the third time the Central Bank of Jordan (CBJ) has raised the deposit rate this year as it seeks to encourage savings in dinar-denominated assets.

The country faces a period of slow economic growth and worsening investor sentiment following civil unrest last month triggered by the lifting of fuel subsidies.

The bank said it kept its other key rates unchanged, with the discount rate staying at 5.00 percent and the one day repo rate at 4.75 percent.

The bank raised rates last year after a period of cuts that ran from 2008, when the bank eased monetary policy to cushion the economy against the impact of the global financial crisis and to curb inflation.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia, other issuers gear up as Gulf bond crush looms

Saudi Arabia, other issuers gear up as Gulf bond crush looms

Cash-strapped region gears up for one of its heaviest-ever periods...

Saudi central bank fights to curb money rate rise

Saudi central bank fights to curb money rate rise

Commercial bankers say more radical steps may be needed to fight...

Are the troubles easing for Saudi construction giant Binladin?

Are the troubles easing for Saudi construction giant Binladin?

Gulf kingdom's biggest builder appears to have pulled back from...

Most Discussed
sponsoredTracking