Amman, May 8 (Petra) -- The Open Market Operations Committee of the Central Bank of Jordan (CBJ) decided to keep interest rates on all monetary policy tools unchanged, a move aimed at maintaining macroeconomic stability amidst evolving domestic and international economic conditions.

The decision reflects a thorough review of the economic, financial, and monetary landscape, both within Jordan and globally.

The CBJ emphasized the resilience of the Kingdom’s monetary system, underscored by a record-high foreign reserves position exceeding USD 22.8 billion at the end of April 2025. These reserves are more than adequate to cover 8.8 months of imports, offering a robust buffer against external shocks.

Jordan’s inflation rate remained stable at 2.0% during Q1 2025, with expectations for the full year of 2025 to hold steady at around 2.2%. This controlled inflationary environment is viewed positively for maintaining purchasing power and supporting economic growth.

On the banking front, the financial sector showed strong performance. Customer deposits grew by 6.8% year-on-year, reaching JD 47.4 billion as of March 2025. Meanwhile, credit facilities provided by banks rose by 3.9% over the same period, totaling JD 35.2 billion, indicating a steady expansion of credit activity in line with the country's economic needs.

The external sector also demonstrated positive growth. Tourism receipts surged by 8.9% in the first quarter of 2025, reaching USD 1.7 billion, compared to the same period in 2024.

Additionally, remittances from Jordanians abroad increased by 2.0% in the first two months of the year, amounting to USD 606 million. Exports grew by 9.2%, totaling USD 2.0 billion in the same period, reflecting strong demand for Jordanian goods and services in international markets.

Furthermore, preliminary estimates suggest that foreign direct investment (FDI) into Jordan reached approximately USD 2.1 billion in 2024, signaling strong investor confidence and the Kingdom’s continued attractiveness as an investment destination.

Jordan’s economy grew by 2.5% in 2024, with expectations for a slight acceleration to 2.7% in 2025, driven by robust domestic consumption and expanding external demand.

The Central Bank of Jordan reaffirmed its commitment to maintaining monetary and financial stability by closely monitoring domestic and global developments. The bank emphasized its readiness to implement necessary policy measures to mitigate inflationary pressures and sustain economic growth within a stable macroeconomic framework.

//Petra// RZ

08/05/2025 12:40:51