CBJ Unveils JD760 Mln Stimulus to Bolster Tourism, Food Security, and Liquidity
Amman, April 5 (Petra) -- The Central Bank of Jordan (CBJ) has launched a proactive 760 million dinar ($1.07 billion) stimulus package to fortify the national economy against regional volatility, prioritizing tourism, food security, and banking system liquidity.
The intervention, announced Saturday, marks a strategic recalibration of monetary policy intended to absorb shocks stemming from regional military escalation.
In a move to immediately bolster credit availability, the CBJ slashed the statutory reserve requirement on demand deposits by two percentage points. Effective immediately, the ratio drops to 5% for commercial banks and 4% for Islamic banks. This technical adjustment is expected to release approximately 300 million dinars in loanable funds into the banking system.
Furthermore, as a cautionary measure, the CBJ has been phasedly reducing the outstanding balance of Certificates of Deposit (CDs) issued since the outbreak of regional hostilities in June 2025. From a peak of 550 million dinars, the balance is set to hit 150 million dinars by April 7, 2026. This drawdown effectively re-injects 400 million dinars of high-powered liquidity back into the money market.
Recognizing tourism as the sector most vulnerable to regional tensions, the CBJ has rolled out a specialized concessionary financing facility. Under this initiative, the government will subsidize interest and return rates on new credit facilities granted to tourism-dependent enterprises through the end of 2026.
The primary objective of this funding is to bridge the gap for operational expenses – specifically payroll – to prevent mass layoffs and ensure the Kingdom’s hospitality infrastructure remains intact for an eventual post-crisis recovery.
To safeguard the national food supply, the Central Bank allocated 60 million dinars in low-cost financing strictly for the importation of essential food commodities.
In a strategic partnership with the Jordan Loan Guarantee Corporation (JLGC), the CBJ confirmed that 85% of the value of these credits will be guaranteed.
This state-backed guarantee significantly lowers the risk profile for local banks, ensuring that importers can maintain the steady flow of goods despite disrupted regional logistics.
These latest measures are integrated into the CBJ’s broader "Program for Financing Economic Sectors." Since its inception in 2011, this flagship program has injected approximately 2.7 billion dinars into 3,868 projects, contributing to the creation of roughly 21,000 jobs.
The Central Bank emphasized that it remains in a state of "vigilant monitoring," expressing readiness to deploy further interventions to maintain monetary and financial stability as regional dynamics evolve.
//Petra// AA
