Falling euro benefits Jordan’s foreign trade, finances — pundits

euro jod eur jd
(Photo: Envato Elements)
AMMAN — According to economists, the depreciation of the euro against the US dollar will benefit Jordan’s economy and finances by lowering the trade deficit with EU countries and bolstering foreign exchange reserves, according to the Jordan News Agency, Petra.اضافة اعلان

A cheaper euro means cheaper imports from the EU, as well as a lower cost of servicing the Kingdom’s non-US dollar loans.

In the first three months of this year, trade between Jordan and EU countries amounted to approximately JD1.029 billion, with the balance heavily skewed in favor of the bloc countries, according to official data.

The Kingdom’s imports from EU countries totalled approximately JD939 million, while exports did not exceed JD90 million, resulting in a JD849 million deficit.

Head of the Jordanian European Business Association Ali Murad said that the euro has dropped by around 20 percent since the beginning of 2022, which will have an impact on the Kingdom’s trade deficit with EU.

Vice-President of the East Amman Industrial Investors Association Iyad Abu Haltam believes that the low exchange rate of the euro will reduce Jordan’s trade deficit with the EU, but warns that a cheaper euro will boost the appetite for imports, harming local products.

According to Abu Haltam, the damage may result from importing duty-free European goods, despite the fact that similar locally produced alternatives are readily available in the market.

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