Amman, October 3 (Petra) -- The finacial and banking sector accounts for over 50 percent of the national economy in terms of capital and work volume, according to representative of the sector at the Jordan Chamber of Commerce Firas Sultan.

He said in a press release on Monday that the financial services sector, which includes 320 companies operating across the Kingdom, is a key engine of growth as it provides financing to various economic activities.

The sector is currently in a real partnership with the Central Bank of Jordan (CBJ), he said, noting a clear understanding of the issues posed to it and the need to address them taking into consideration the national economy's interests.

The banking sector, he said, is clearly developing its services as it copes with electronic transformation, which makes it the focus of the attention of foreign investors, adding that such role was clearly obvious during the Covid-19 pandemic.

Sultan said that the CBJ's monetary policy positively reflected on the financial and banking sector, as the dinar's exchange rate stabilized and foreign currency reserves grew to over $18 billion.

He noted that banks, insurance companies, financial leasing and exchange services companies, financial intermediaries and investment and insurance brokers fall under the umbrella of financial and banking services.

The sector is a key magnet of Arab and foreign investments, thanks to incentives and facilities offered to business owners and investors, in addition to stringent controls related to combating money laundering and cybersecurity and the Kingdom's security and stability, he said.

He also pointed to a "noticeable" improvement in the exchange rates of the Jordanian Dinar against foreign currencies, namely the euro and the pound sterling, which reduces import costs from European countries, cuts the Kingdom's trade balance deficit and leads commodity prices to drop in the local market.

Sultn also said the local exchange market showed signs of improvement after the pandemic as incoming and outgoing remittances have grown since the start of the year, in addition to better financial flow with neighboring countries.

He said remittances by Jordanian expatriates, a key contributor to the national economy and a driver of various economic sectors, grew to $2.251 billion in the past eight months of the year, compared to $2.238 billion in the same period of last year.

//Petra//SS

03/10/2022 15:48:45