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FINANCIAL NEWS
Jordan will not sever dinar-dollar peg: CB
10 May 2012
(MENAFN) Jordan central bank’s deputy governor, Maher Sheikh Hasan, announced that Jordan has no plans to cancel its currency’s peg to the US dollar, reported Arab News.
Sheikh Hasan said that for many years, the dinar peg to the US dollar has benefited the country and provided stability to Jordan’s economy.
On the other hand, he said that the bank’s decision in February to lift up benchmark rates was driven by possible inflationary risks and to enhance savings in dinar-denominated assets.
Moreover, the freeze on gasoline prices managed to maintain inflation under control, averaging 3.6 percent so far this year, down from 4.4 percent in 2011’s same period.
It is worth noting that in 2012, Jordan’s economy is forecasted to grow 2.8 percent, compared with 2.5 percent in 2011.
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