During a meeting held by the Finance Committee in the House of Representatives on Sunday, the Governor of the Central Bank of Jordan, Dr. Adel Al-Sharakis, presented a report on the developments of the national economy and monetary policy. He emphasized the strength of the national economy and its high capacity to deal with geopolitical challenges, and its ability to move quickly to the recovery phase, recording growth of 2.8 percent in the second quarter of 2025. He expects growth for the whole year to reach 2.7 percent, and to rise to 3 percent in the medium term and may exceed 4 percent by 2028, driven by structural reforms and the implementation of major infrastructure projects.
He noted that the external sector performed strongly, with exports growing, tourism revenue recovering, remittances from workers abroad increasing, in addition to attracting $1 billion in foreign investments during the first half of the year.
Al-Sharqawi stressed the Central Bank’s commitment to maintaining monetary and financial stability, noting that interest rates have been reduced six times since September 2024 by a total of 175 basis points.
He pointed out that the monetary indicators reflect the success of the policy pursued by the Central Bank, with foreign reserves rising to a record level exceeding $24.6 billion, which is sufficient to cover about 8.8 months of the Kingdom’s imports of goods and services. The dollarization rate also decreased to 17.8 percent, in addition to the decrease in the inflation rate and its stability at 1.8 percent.
He also affirmed the strength and resilience of the banking system, as reflected in financial soundness indicators, most notably the capital adequacy ratio, which reached 18 percent, noting the continued growth in bank deposits, which reached 49.3 billion dinars at the end of last October, an increase of 3.3 billion dinars (7.3 percent year-on-year).
He noted that the banking sector plays a pivotal role in supporting economic growth by providing credit facilities on a wide scale and to various sectors, pointing out that there is a continuous improvement in the balance of credit facilities.
The governor's remarks came during a meeting held by the Finance and Economic Committee of the Senate, chaired by Senator Dr. Rajai Al-Muasher, regarding the monetary policy overseen by the Central Bank, and attended by the Deputy Governor, Dr. Khaldoun Washah.
