AMMAN — According to the Central
Bank of Jordan, domestic liquidity increased during the first five months of
this year by 3 percent, or JD1.1 billion, compared to the levels recorded at
the end of last year, Al-Ghad News reported.
اضافة اعلان
At the end of May, domestic liquidity reached JD40.6 billion,
compared to its recorded level of JD39.5 billion at the end of 2021.
Deposits and cash in circulation are the most important components
of domestic liquidity.
There are several definitions of liquidity, including having money
when one needs it; the ability to provide money at a reasonable cost to meet
obligations; the ability to make withdrawals from deposits, and meet the demand
for loans; or the ability to convert some assets into cash ready in a short
period of time without loss.
The value of deposits at local banks grew by 2.7 percent to JD34.2
billion at the end of May. The volume of growth in deposits during the first
five months of the current year amounted to JD900 million, adding to the
cumulative deposits value of JD33.3 billion at the end of the year 2021.
On the other hand, cash in circulation increased at the end of the
first five months of this year by 3.2 percent, to JD6.4 billion, compared to
JD6.2 billion at the end of 2021.
Factors
affecting liquidity are the net domestic and foreign assets of the banking
system. According to the Central Bank figures, net domestic assets with the
banking system at the end of May of this year recorded an increase of JD2.1
billion over the level recorded at the end of last year. Local assets increased
by 6.6 percent during the first five months of this year, to JD33.8 billion,
compared to the same period at the end of last year, when it was JD31.7
billion.
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