Central Bank of Jordan (CBJ) Governor Ummaya Touqan said sluggish economic growth in the U.S. and major European countries is likely to lower the prices of fuel and other basic commodities, including food prices, local daily The Jordan Times reported on Monday.
This will positively affect the economic performance in developing countries, said Touqan, who was asked about the impact of the current financial crisis in the U.S. and major European countries on the Jordanian economy in general.
The governor, however, said the sluggish demand on the international level may negatively affect exports in developing countries.
Touqan said the recent events on the global markets underline the role and efficiency of monitoring bodies. "There is a need for complete disclosure of risks especially regarding newly innovated financial tools," he said.
The CBJ governor said such foreign crisis may appear from time to time but what matters "is to have a banking system that is sound and capable of dealing easily and flexibly with any foreign developments."
According to Touqan, Jordanian banks are generally in a sound condition.
"By setting ratios to control lending for real estate and other purposes in addition to controls of investments in foreign assets, the CBJ has assisted Jordanian banks to avert these financial risks," said Touqan.
Touqan said his bank will follow up closely on all local and international developments and will take necessary measures to maintain a level of liquidity that corresponds to the size of economic activity and to safeguard the Jordanian banking system and the Jordanian dinar exchange rate.
Source: Xinhua
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