Amman – In an economy facing the repercussions of successive regional and global crises, monetary stability stands out as one of the key pillars of economic resilience. It is also a crucial factor in strengthening confidence in the national currency, protecting purchasing power and providing a more predictable environment for savings and investment.
In Jordan, this stability has gained added importance in recent years amid the repercussions of the COVID-19 pandemic, the Russia-Ukraine war and the global inflationary waves that followed, as well as geopolitical turmoil that has affected economies across the region.
An international indicator reflecting the strength of this stability placed Jordan third globally in the “Sound Money” component of the 2026 Economic Freedom of the World report, issued by Canada’s Fraser Institute. Jordan scored 9.59 out of 10, ranking behind Switzerland and Finland, based on 2024 data.
Economists said the achievement goes beyond securing a high position in an international ranking. It reflects the importance of Jordan’s monetary and banking system in strengthening confidence in the dinar, limiting risks associated with price and exchange-rate fluctuations, and enhancing the ability of individuals and businesses to plan financially in an unstable regional and international environment.
The economic significance of this achievement, however, extends beyond maintaining monetary stability itself. The key challenge is to build on this advantage to enhance Jordan’s investment appeal, stimulate productive projects, increase exports and create jobs, ensuring that confidence in monetary stability translates into greater economic activity and improved living standards.
The “Sound Money” component measures the ability of the monetary environment to provide a stable currency through a set of indicators related to inflation levels, money-supply growth, price stability and the ability to maintain bank accounts in foreign currencies.
According to the report, Jordan scored 9.59 out of 10 in this component, ranking third globally and highlighting the position of monetary stability among the strengths of the national economy.
In the overall Economic Freedom Index, Jordan ranked 50th globally out of 165 countries and territories covered by the report, scoring 7.38 out of 10. It also ranked 25th globally in the regulations component, with the same score of 7.38, reflecting varying performance across the index’s components and leaving room for further improvements in the regulatory environment while preserving monetary gains.
These results are particularly significant because of their connection to the economy’s ability to provide a more predictable environment, especially as large parts of economic activity depend on imports and companies need to manage costs and financial obligations amid fluctuations in global markets.
Al-Mahrouq: Monetary Stability Is the Foundation of Economic Confidence
Mahir Al-Mahrouq, Director General of the Association of Banks in Jordan, said the Kingdom’s third-place global ranking in the “Sound Money” component represents an important achievement that strengthens its position on the global monetary stability map and provides a positive indicator of confidence in Jordan’s monetary environment.
He said the significance of the result stems from the nature of the criteria measured by the component, particularly inflation and its stability, money-supply growth relative to real economic activity, and the ability to maintain bank accounts in foreign currencies. These factors influence decisions by individuals and businesses regarding savings, financing and investment.
He noted that domestic monetary indicators support this assessment. Foreign reserves stood at around $28.47 billion at the end of September 2026, while inflation averaged 2.26% during the first nine months of the year, according to the data he cited.
Monetary stability, he explained, reduces uncertainty surrounding economic decisions and gives investors and companies greater ability to estimate project costs and future revenues, manage cash flows and develop medium- and long-term financial plans.
At the household level, price stability helps limit the erosion of the purchasing power of income and savings, particularly for people on fixed incomes. For businesses, it helps control budgets, estimate operating costs and manage financial obligations, while the stability of the dinar against the US dollar reduces some of the risks associated with transactions denominated in the currency.
Al-Mahrouq added that confidence in the dinar also supports the banking sector by strengthening deposit stability and the resource base available to finance the economy, while helping banks and their customers assess risks and repayment capacity more clearly.
He stressed that maintaining this position requires building on monetary stability by improving the business environment, facilitating investment and raising productivity. This would help translate confidence in the economy into new projects, productive expansions and job opportunities.
He also emphasized the central role of the Central Bank of Jordan in maintaining monetary stability and confidence in the dinar by managing interest rates and liquidity in line with domestic and external developments. Confidence in a currency, he said, accumulates over years of consistent policies and the ability to withstand economic shocks.
Al-Sarhan: Stable Dinar Limits Import Risks and Supports Investment
Financial expert Mohammad Al-Hadab Al-Sarhan said Jordan’s third-place ranking globally in the “Sound Money” index carries economic significance that goes beyond the international classification. It reflects the Kingdom’s ability to maintain monetary stability in a regional environment characterized by continued economic and geopolitical volatility.
He explained that currency stability and controlled inflation strengthen confidence in the national economy and give investors, households and companies greater ability to plan and make long-term financial decisions.
Al-Sarhan attributed the result to the monetary policies pursued by the Central Bank of Jordan over many years, particularly maintaining the dinar’s exchange-rate stability against the US dollar, managing liquidity in support of monetary stability and strengthening confidence in the national currency and banking system.
He noted that exchange-rate stability is particularly important for Jordan because the economy relies on imports to meet a significant portion of its energy, goods and raw-material needs.
A stable dinar helps limit the transmission of currency fluctuations into import costs and reduces exchange-rate risks facing companies and investors.
He explained that exchange-rate stability does not isolate the Jordanian economy from global price increases, but it limits additional pressures caused by depreciation of the local currency. This represents an important advantage during periods of international market turbulence.
Foreign reserves and the strength of the banking sector also enhance the monetary policy’s ability to withstand external shocks, he said.
Regarding investment, Al-Sarhan said monetary stability helps reduce risks associated with transactions in dinars and improves the ability to estimate future cash flows, which can support the attractiveness of long-term investment, particularly in industry, infrastructure and capital-intensive projects.
He added that greater clarity in estimating future revenues and costs helps investors make expansion decisions. However, this advantage does not automatically mean lower financing costs or higher investment volumes, as investor decisions are also influenced by global interest rates, credit risks and public finances.
He noted that Jordan’s 25th-place ranking in the economic regulations component highlights the importance of integrating monetary stability with the business environment. He said continued efforts are needed to address challenges related to establishing and expanding businesses and accessing financing.
Al-Sarhan stressed that sustaining the achievement requires maintaining the credibility of monetary policy, adequate foreign reserves and a sound banking system, alongside economic policies that strengthen production, exports and foreign-currency inflows.
He called for using the index results more effectively in investment promotion by highlighting the stability of the dinar and controlled inflation in investment proposals and feasibility studies, while linking these advantages to specific productive opportunities and clear operating costs.
Ayash: Monetary Policy Is a Strength for Confidence and Investment
Economic expert Hossam Ayash said Jordan’s third-place global ranking in the “Sound Money” component reflects the level of confidence in the Kingdom’s monetary and banking policies and underscores the importance of monetary stability as a fundamental pillar of confidence in the national economy and its investment appeal.
He explained that the importance of the indicator lies in highlighting the monetary environment’s ability to create conditions conducive to attracting foreign investment by strengthening confidence in the banking sector, allowing transactions in different currencies and providing a stable environment that helps investors manage and transfer their funds according to their needs.
The freedom to open bank accounts in foreign currencies, together with exchange-rate stability and controlled inflation, are important elements of the economic and investment system, helping investors manage financial transactions with greater clarity and confidence.
Ayash added that Jordan’s banking sector is one of the key pillars supporting economic, investment and household activity due to its role in financing economic activities, attracting investment, supporting financial and monetary stability and strengthening the economy’s ability to withstand shocks.
He said efficient monetary and banking management can support economic growth, increase exports and attract investment, while enhancing Jordan’s ability to promote its economic opportunities and expand financial and trade relations with global markets.
Ayash stressed that Jordan’s strong performance in the “Sound Money” index represents a success story that should be built upon rather than simply celebrated. He emphasized the importance of continuing to develop and modernize monetary policy tools to preserve existing confidence and strengthen the country’s ability to respond to future developments.
From Monetary Stability to Growth: The Next Economic Challenge
Jordan’s strong performance in the “Sound Money” component highlights the importance of monetary stability as a pillar of economic confidence, particularly amid the regional and international challenges placing continuous pressure on economies and markets.
However, maintaining this stability and maximizing its benefits require a parallel economic path that links the strength of the monetary system with expanding the productive base, improving the business environment, strengthening exports and increasing companies’ ability to grow and expand.
Currency stability provides investors with a clearer basis for assessing risks, but it does not replace the need for viable investment opportunities, a flexible regulatory environment, efficient procedures for establishing and expanding businesses, and financing sources suited to project requirements.
Accordingly, the international ranking should be viewed as an opportunity to strengthen confidence in the Jordanian economy and promote its competitive advantages, while continuing reforms that raise productivity, stimulate investment and support job creation.
Ultimately, the challenge is not only to maintain a strong position in monetary stability indicators, but to translate that position into tangible economic value reflected in investment, production and employment, while strengthening the national economy’s ability to achieve more sustainable and inclusive growth.
Source: Al-Ghad
