Foreign reserves rise 11.4% in first 5 months of 2022

(File photo: Jordan News)
AMMAN — The volume of foreign reserves increased 11.4 percent in the first five months of this year compared  the same period of 2021, according to central bank data, amounting now to $17.668 billion, compared to $15,852 billion in the first five months of last year.اضافة اعلان

On the other hand, it decreased slightly, 1.6 percent, compared to the figures at the end of April.

According to economic analyst Mazen Irsheid, foreign reserves declined by 2 percent at the beginning of this year, compared to the figures at the end of 2021.

The most important sources of foreign currency at the Central Bank, he said, are exports, foreign investment, and expatriate remittances; of these, exports recorded improvement, and remittances are stable.

Irsheid said that the level of reserves in Jordan is safe and capable of paying six months-worth of imports.

Economic expert Mufleh Al-Aqel stressed that the rise in the volume of foreign reserves is a positive thing that denotes an increased influx of foreign currency; that “constitutes a source of safety for the Jordanian economy”, which imports 70 percent to 80 percent of its needs.

One other reason for the increase, he stressed, was the deposit that turned into a long-term loan from the UAE.

Wajdi Makhamreh said that the increase in potash and phosphate exports led to an increase in foreign reserves, and “this is economically convenient”. Also contributing to the increase, he said, are higher tourism revenues and expatriate remittances. They all “give strength to the Jordanian dinar and enhance donor confidence in the Jordanian economy”.

Zayan Zawaneh said that the central bank’s reserves of gold and foreign currency are satisfying, only “we need to work on the tourism sector because it is one of the sources of foreign currency for our economy, in addition to export and remittances from Jordanians abroad”.

He said that the recent change of the UAE deposit to a soft loan amounting to $650 million helped increase in volume of foreign reserves, which will reflect on the rate of economic growth.

He stressed that central banks alone do not create or protect economies, which makes it incumbent on governments to integrate financial, taxing, and commercial policies with the monetary policies set by central banks, and Jordan should be no exception.

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