Alghad - Economists predicted that the rise in domestic liquidity in its current form will continue to slow economic growth because the main reason behind the rise was the increase in deposits in the vaults of local banks, which means accumulating more funds without operating.

However, experts point out that the rise in liquidity holds a positive aspect in terms of confidence in the dinar. It is worth mentioning that the components of liquidity announced by the Central Bank of Jordan, represented by deposits and cash circulation, as official figures indicate that the value of deposits grew within the concept of liquidity with local banks 2% to 29.7 billion dinars at the end of July, while the circulation of cash 7 To KD 4.6 billion compared to KD 4.3 billion at the end of 2018. Deposits accounted for 87% of local liquidity and 13% of cash in circulation.

 The Central Bank of Jordan's data showed that local liquidity increased during the first seven months of this year by 2.8% or JD 950 million compared to the levels recorded at the end of last year. Domestic liquidity stood at 34.3 billion dinars at the end of July, compared with 33.35 billion dinars at the end of last year.

 Qassim Al-Hammouri, a professor of economics at Yarmouk University, said that the rise in liquidity, driven by the growth of bank deposits, gives an indication that there is no active economic movement in the market, in addition to that it is actually linked to the economic recession in Jordan.

He pointed out that the negative economic impression prevailing among citizens and investors and the fear of the future of the national economy, led them to resort to deposits as a safe haven, on the contrary when there is a positive economic climate, where there is investment of funds, and a large interest in borrowing to establish projects and expand investments.

Hammouri believes that the government has several responsibilities to bring investors, and reassure them, including the review of taxes and financing costs of investors, in addition to removing bureaucratic obstacles and fighting corruption”.

 The former minister and economist Maher Madadha said that “the growth of liquidity achieved during the first seven months of this year, its indicators are not clear, and cannot be bet significantly, but positively indicates the high confidence in the dinar by citizens and investors, and thus will be the return on the dinar "However, on the other hand, this growth has negative dimensions such as low domestic investment and slower growth”.

 Madadha called on the government to adopt an economic approach, the main objective of which is development, and attracting investment so that the national economy can increase production rates, provide job opportunities, and improve its indicators at all levels by reducing investment costs, encouraging and eliminating all fears that may arise and hiding all aspects. Repulsive bureaucracy for investors.

Economist Mohamed Al-Bashir said that the growth of local liquidity, which has achieved a negative indicator of the activity of the national economy, explained the occurrence of the use of citizens and local investors to save, which is safer, in light of the difficult economic situation and the hesitant and frightening outlook of the state of the national economy.

 The government also has several responsibilities to pay local citizens and investors to inject their money into the market and invest in it, according to Al-Bashir, at the forefront of these responsibilities, according to him the need to reduce taxes and reconsider some of them and reduce energy costs on investment projects, in addition to reducing costs Financing investors, providing a truly integrated and secure business environment.

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