Jordan Times
Friday, April 25, 2008
Dinar should remain pegged to dollar - experts
AMMAN (JT) - The government on Thursday held a
dialogue session with former prime ministers, ministers and key economic figures
to look into “workable and realistic solutions” to overcome current economic
challenges, the Jordan News Agency, Petra, reported.
The agency quoted experts as advising the government to keep the exchange policy
without changes.
In the King’s Letter of Designation to the government in November, the Dahabi
government was tasked with addressing economic challenges, basically resulting
from a growing budget deficit and foreign debt, in addition to the increase in
oil prices and other commodities, amid an international crisis that is
witnessing a deteriorating dollar, unprecedented oil prices and alarming
shortages in essential foods.
During the meeting, Prime Minister Nader Dahabi outlined the Kingdom’s economic
challenges and steps the government has taken, upon King Abdullah’s directives,
to protect citizens, especially those of low- and limited-income, from the
fallout of price increases.
He also highlighted the Social Safety Net the government tailored to offset the
repercussions of lifting subsidies, including pay increases for civil and
military employees, improvements to health and education services and tax
exemptions, mainly involving basic food items.
As part of these measures, the government also postponed the liberalising of the
prices of gas cylinders and fodder and decided not to hike the prices of regular
bread, Dahabi added.
He also referred to the Royal initiative to provide low- and limited-income
citizens with affordable housing over the next five years.
Discussions on the economic challenges addressed three main areas: challenges
facing the energy sector, the increase in the prices of basic commodities and
the Kingdom’s fiscal policy.
Minister of Energy and Mineral Resources Khaldoun Qteishat and Industry and
Trade Minister Amer Hadidi reviewed the main aspects in the first two areas,
highlighting the impact of the soaring international prices of commodities on
the economic situation in Jordan.
Participants urged the government to intensify efforts towards finding
alternative sources of energy and to utilise sources available in a more
efficient manner.
They also called for efficient and advanced means of transportation to help
rationalise energy consumption while underlining the importance of controlling
market prices to curb unjustified hikes.
Governor of the Central Bank of Jordan Umayya Touqan presented a briefing on the
country’s fiscal policy.
Some participants noted that there was no need for any changes in the exchange
rate of the Jordanian dinar or to make any alteration as to the fact that the
Jordanian currency is pegged to the dollar.