Jordan raises overnight rate to bolster dinar

  • Share via facebook
  • Tweet this
  • Bookmark and Share
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!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Public pressure grows on Gulf sovereign funds with cheap oil

Public pressure grows on Gulf sovereign funds with cheap oil

SWF managers face growing pressure from politicians and the public...

Gulf banks increase lending footprints in Asia, Africa

Gulf banks increase lending footprints in Asia, Africa

There's an emerging trend in international capital markets: the...

Some banks win, some lose in Dubai's 'Islamic economy'

Some banks win, some lose in Dubai's 'Islamic economy'

Dubai's gov't announced plans to turn the emirate into a global...

Most Discussed