The Open Market Operations Committee of the Central Bank of Jordan decided, in its seventh meeting of the year, to lower the Central Bank’s main interest rate and the interest rates on other monetary policy instruments by 25 basis points, effective Sunday, November 2, 2025.
اضافة اعلان
This decision comes following the Committee’s assessment of recent economic, monetary, and financial developments, including local, regional, and global interest rate trends. Monetary and banking indicators have continued to show positive momentum throughout the year so far.
The Central Bank’s foreign reserves reached an unprecedented level of USD 23.9 billion at the end of September 2025, covering 9.1 months of the Kingdom’s imports of goods and services—around three times the internationally accepted benchmark—reflecting the strength of monetary and financial stability in the Kingdom.
The dollarization rate declined to 17.9% at the end of August 2025, while inflation remained stable at around 2% during the first three quarters of the year—a level consistent with the Central Bank’s projections and one that helps preserve purchasing power and enhance the competitiveness of the national economy.
Customer deposits at banks rose by 5.5% year-on-year, reaching JOD 48.8 billion at the end of August 2025, while outstanding credit facilities extended by banks increased by 3.3%, totaling JOD 35.7 billion. As for banking sector soundness indicators as of the end of the first half of the year, they confirmed the strength and resilience of Jordan’s banking sector. The capital adequacy ratio stood at 18%, among the highest in the region, while the liquidity ratio reached a comfortable 142.4%, exceeding the Central Bank’s required minimum of 100%.
Regarding balance of payments indicators, tourism revenues rose by 6.8% during the first three quarters of 2025, reaching USD 6.0 billion, while workers’ remittances increased by 3.1% during the first eight months of the year to USD 3.0 billion.
Similarly, the Kingdom’s total exports grew by 7.7% during the first eight months of 2025, reaching USD 9.5 billion. Net inflows of foreign direct investment (FDI) reached USD 1.0 billion in the first half of 2025, marking a 36.4% increase compared to the same period in 2024.
As a result, the current account deficit narrowed to 7.4% of GDP in the first half of 2025, down from 8.3% during the same period in 2024, supported by an 18.7% rise in the services account surplus and a 42.1% decline in the investment income deficit. On the growth front, the national economy expanded by 2.8% in the second quarter, following 2.7% growth in the first quarter of the year.
The Central Bank of Jordan reaffirmed its firm commitment to maintaining monetary and financial stability, in support of sustainable economic growth and overall macroeconomic stability in the Kingdom.
