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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