Jordan money supply growth slows to 6.3pc
Amman, October 11, 2009
Jordan's money supply growth slowed to 6.3 per cent in the year to August from growth of 14.6 per cent during the same period in 2008, central bank data showed on Sunday.
Money supply, measured as M2, rose to 19.463 billion dinars ($27.45 billion) at end-August 2009, from 18.304 billion dinars at the start of the year, released data by the Central Bank of Jordan (CBJ) showed.
M2, the broadest measure of money supply in Jordan's economy, rose 14.6 per cent in the first eight months of last year when it stood at 17.879 billion at end-August, 2008 against 15.606 billion dinars at the start of 2008.
Last year saw a record 17.3 rise in M2, fuelled by high inflation caused by a sharp rise in oil and commodity prices.
Domestic bank credit, a component of M2, decreased in the first half of the year for the first time in over a decade as commercial banks adopt tighter credit policies as the global downturn slows growth and domestic consumption.
The CBJ took a series of pre-emptive measures to soften monetary policy from the outset of global turbulence at the end of last year to ease the impact on the economy and inject more liquidity.
The CBJ cut reserve requirements on commercial deposits, stopped issuing certificates of deposit and cut major benchmark lending rates to free up funds for lending to spur economic growth.-Reuters