Amid global economic volatility and mounting regional and international financial pressures, the Jordanian dinar has continued to maintain its stability, supported by prudent monetary policy and independent institutional management that have enabled the national economy to overcome unprecedented challenges in recent years.
اضافة اعلان
In this context, Governor of the Central Bank of Jordan, Dr. Adel Sharkas, presented an in-depth assessment of the Kingdom’s monetary stability, stressing that the rise in foreign reserves to more than USD 24.6 billion was not the result of exceptional circumstances or temporary inflows, but rather the outcome of an integrated approach to monetary policy management based on proactiveness, flexibility, and the effective use of the Bank’s tools—anticipating global changes rather than merely reacting to them.
Sharkas explained that Jordan’s monetary stability framework has proven resilient in the face of unprecedented financial and regional pressures, ranging from global market turmoil over the past three years, to fluctuations in international interest rates, and ongoing geopolitical tensions in the region.
He noted that the Central Bank’s ability to boost reserves from around USD 18 billion to over USD 24.6 billion in a short period reflects the strength of Jordan’s economic fundamentals and the success of the financial system in generating sustainable foreign currency surpluses through multiple channels. These include national exports, remittances from Jordanians abroad, tourism revenues, foreign direct investment, and the natural inflows of the banking market.
Sharkas emphasized that Jordan’s success in safeguarding monetary stability was not inevitable, but rather the result of prudent management rooted in strong institutional independence, which enabled the Bank to make decisions free from short-term pressures or considerations. He explained that Jordan’s monetary policy is conducted through a rigorous, scientific approach that closely monitors global developments, tracks the movements of major central banks, international market fluctuations, and future trends in interest rates, inflation, and liquidity—ensuring gradual and balanced decisions that preserve exchange rate stability and financing costs without exposing the economy to imbalances.
He affirmed that the Bank’s independence is not merely a legal provision, but a daily practice that strengthens its ability to protect the dinar and maintain competitive levels of reserves and credit. This independence, he said, has long been one of the key sources of economic strength and a central pillar in building confidence among both local and foreign investors, as it establishes a stable financial environment whose direction does not shift with political moods or short-term trade-offs, but remains firmly committed to its core objective: safeguarding the value of the dinar and ensuring financial system stability.
Sharkas pointed out that Jordan’s monetary policy has long been based on a principle of anticipation and insulating the local market from external shocks, which has reinforced investor confidence in the soundness of the monetary approach and the stability of the financial framework. He noted that the dinar has remained stable since 1995, and that this stability is not a slogan but a strategic commitment underpinning the Bank’s policies in managing interest rates, reserves, and banking regulation.
He stressed that the strength of the dinar represents a cornerstone of Jordan’s business environment, enabling investors to engage in long-term planning without exposure to exchange rate risks, and enhancing the Kingdom’s competitiveness in attracting capital seeking stable markets shielded from monetary volatility. He added that Jordan’s positive credit rating, the high solvency of the banking sector, and robust regulatory frameworks collectively support this financial stability.
Sharkas also highlighted a qualitative transformation in Jordan’s financial sector, supported by an advanced technological infrastructure developed by the Central Bank in recent years. He noted that digital payment systems have become a central component of the economic cycle, with the “eFawateercom” system processing annual transactions exceeding USD 21 billion, while “CliQ” transactions have surpassed USD 17 billion. This comes alongside the expanding use of bank cards and e-wallets, contributing to broader financial inclusion, higher transparency, and lower transaction costs.
He explained that these digital transformations go beyond technical upgrades, constituting a broad economic project that accelerates money circulation, energizes productive sectors, and facilitates commercial and service operations—thereby strengthening institutional and investor confidence in the efficiency of Jordan’s financial infrastructure and its capacity to absorb growing electronic services.
Sharkas underscored that the Bank has given top priority to cybersecurity by establishing a strict regulatory framework to protect financial infrastructure from threats. He noted that Jordan is among the first countries in the region to successfully build a comprehensive banking cybersecurity framework through the deployment of advanced technologies, staff training, and regular sector-wide stress testing to enhance readiness and prevention.
Addressing interest rate developments, Sharkas said that Jordan’s monetary policy takes into account the historical relationship between the dinar and the US dollar, while also relying on continuous assessments of domestic economic conditions, including levels of economic activity, liquidity, and credit trends.
He emphasized that any decision in this area is primarily aimed at protecting monetary stability, noting that the Central Bank has succeeded in achieving a delicate balance in recent years between the needs of the real economy and the requirements of maintaining exchange rate stability.
Sharkas stated that the Jordanian economy is gradually transitioning from recovery to genuine growth, with expectations of growth reaching around 3 percent in 2026 and exceeding 4 percent by 2028. He added that foreign reserves have surpassed USD 24.6 billion—a historic level covering approximately 110 percent of the Kingdom’s obligations under the International Monetary Fund’s adequacy metric—thereby supporting exchange rate stability and reinforcing confidence in the economy.
He revealed that foreign direct investment inflows grew by 36 percent during the first half of the year, with expectations that this momentum will continue amid improving regional conditions and sustained monetary and financial stability. He also noted that the decline in dollarization to 17.9 percent from 24 percent reflects growing confidence in the dinar and the monetary policy in place.
Sharkas concluded that Jordan now stands on a stronger monetary and financial foundation, and that economic strength is no longer measured solely by growth rates, but by the ability to manage risks, absorb shocks, and provide a safe and enabling environment for investment and economic activity.
(Petra – Raef Al-Shiyab)
