Khaberni - The Open Market Operations Committee in the Central Bank of Jordan, in its seventh meeting this year, decided to reduce the "main interest rate" of the central bank and the interest rates of other monetary policy tools by 25 basis points, starting from Sunday, November 2, 2025.
This reduction was made in light of the committee's assessment of economic, monetary, and financial developments, including local, regional, and global interest rate trends. Moreover, monetary and banking indicators showed continuous positive momentum during the past period of the year. The central bank's foreign reserves reached an unprecedented level of $23.9 billion at the end of September 2025, which covers the import of goods and services of the kingdom for 9.1 months, equivalent to three times the internationally accepted standard, reflecting the robustness of monetary and banking stability in the kingdom. Furthermore, the dollarization rate decreased to 17.9% at the end of August 2025, and the inflation rate stabilized around 2% approximately during the first three quarters of the current year, a level consistent with the central bank's expectations, and which helps maintain purchasing power and enhance the competitiveness of the national economy.
Additionally, the total customer deposits at banks increased by 5.5% on an annual basis to reach 48.8 billion dinars at the end of August 2025, and the outstanding balance of credit facilities provided by banks increased by 3.3% to 35.7 billion dinars. Financial safety indicators for banks, as at the end of the first half of the year, affirmed the strength of the Jordanian banking sector and its sound performance. The capital adequacy ratio reached 18%, which is among the highest in the region, in addition to comfortable statutory liquidity levels reaching 142.4%, exceeding the 100% ratio imposed by the central bank.
In terms of balance of payments indicators, the income from tourism in the kingdom increased by 6.8% during the first three quarters of the current year to reach 6.0 billion dollars, and remittances from workers abroad increased by 3.1% during the first eight months of the year to 3.0 billion dollars. In the same context, the total exports of the kingdom grew by 7.7% during the first eight months of the year to reach 9.5 billion dollars. Foreign direct investment inflows to the kingdom during the first half of 2025 increased to 1.0 billion dollars, with a growth rate of 36.4% compared to the corresponding period of 2024. Consequently, the current account deficit in the first half of the year decreased to 7.4% of GDP, compared to 8.3% during the corresponding period of 2024, supported by an increase in service account surplus by 18.7% and a decline in investment income deficit by 42.1%. Regarding economic growth, the national economy grew by 2.8% during the second quarter, after achieving a growth rate of 2.7% in the first quarter of the year.
The Central Bank of Jordan reaffirms its steadfast commitment to maintaining monetary and financial stability, serving the goals of sustainable economic growth and overall economic stability in the kingdom.
