The Central Bank of Jordan’s (CBJ) Open Market Operations Committee maintained its key interest rate at 5.75 per cent following its third meeting of 2026. This decision signals the CBJ's continued confidence in the nation's economic resilience and its commitment to fostering a stable financial environment. The decision, announced by the CBJ, was made as the bank stated, "This shows the Jordanian economy’s ability to sustain stable growth despite ongoing regional and global challenges." This statement notes the central bank's assessment that current monetary policy settings are appropriate to navigate the prevailing economic landscape. Earlier in April 2026, the CBJ had introduced a precautionary package totaling JD760 million, demonstrating its proactive approach to managing potential economic volatilities and ensuring liquidity within the financial system. The maintenance of the key interest rate is a strategic move, reflecting a careful balance between controlling inflation and encouraging economic activity.
Economic Indicators Support Stability
A full review of recent economic indicators provided strong support for the CBJ’s decision to hold rates steady. Foreign currency reserves in Jordan reached a strong $26.8 billion by the end of March 2026. This impressive figure represented a significant increase of $1.3 billion from the end of 2025, indicating a strengthening of the country's external position. These substantial reserves are adequate to cover 9.4 months of the country's imports, far exceeding international benchmarks for reserve adequacy and providing a strong buffer against external shocks. The healthy level of foreign currency reserves shows the stability of Jordan's financial system and its capacity to meet international obligations.
Further illustrating this stability, the dollarisation rate, which measures the proportion of foreign currency deposits in the banking system, declined to 18.1 per cent by the end of February 2026. This was a notable decrease from 18.8 per cent recorded a year earlier, suggesting increased confidence in the Jordanian dinar and a reduced reliance on foreign currencies within the domestic economy. A lower dollarisation rate is generally viewed as a positive sign of macroeconomic stability and effective monetary policy.
Inflation in Jordan remained subdued during the first quarter of 2026, registering at a modest 1.4 per cent. This low inflation rate is a key factor supporting the CBJ's decision, as it indicates price stability and preserves the purchasing power of citizens. The tourism sector demonstrated strong performance, with revenues reaching approximately $1.65 billion in the first three months of 2026. This strong performance in tourism notes the sector’s vital contribution to foreign exchange earnings and overall economic growth. Remittances sent by Jordanians living abroad also saw a significant rise, providing a key source of income for many families and contributing to the national economy. These remittances increased by 12.7 per cent in the first two months of 2026, amounting to $740 million, showcasing the enduring connection and support from the Jordanian diaspora. National exports contributed to economic stability, growing by 3 per cent to reach a total of $1.9 billion, further diversifying Jordan's revenue streams and enhancing its trade balance. These positive trends across various economic sectors paint a picture of an economy that is steadily growing and resilient in the face of broader global uncertainties.
Growth and Investment Trends
The sustained economic momentum was further bolstered by strong investment inflows. Foreign direct investment in Jordan expanded by a significant 25.1 per cent during 2025, reaching approximately $2 billion for the year. This substantial increase in foreign investment shows international confidence in Jordan's economic prospects and its business environment. The inflow of foreign capital is key for job creation, technology transfer, and overall economic development. The increase in foreign investment contributed directly to the country's economic performance, driving growth across various sectors.
Jordan's economy registered a growth rate of 3 per cent in the fourth quarter of 2025. This marked an acceleration compared to the 2.6 per cent economic growth recorded in the fourth quarter of 2024, indicating a positive trajectory for the national economy. These figures reflect a period of sustained economic activity and investor confidence, suggesting that the government's economic policies and reforms are yielding positive results. The Central Bank of Jordan has previously cited such growth trends as indicators of the economy's resilience amidst regional and global challenges, emphasizing its ability to maintain stability and progress. The consistent performance in key economic sectors, combined with the inflow of foreign capital, has been a key factor in maintaining economic stability and fostering an environment conducive to further development.
Central Bank's Commitment
All other monetary policy rates were left steady by the Central Bank of Jordan (CBJ), affirming its current monetary policy stance. This full stability in interest rates includes deposit windows and repurchase agreements, reinforcing the bank's consistent approach. The decision follows a series of careful assessments by the CBJ regarding the nation's economic health and its ability to withstand external pressures, ensuring that policy adjustments are data-driven and well-considered. Maintaining these rates aligns with the bank's strategy to foster a stable financial environment while supporting sustainable growth across various economic sectors, from manufacturing to services. The CBJ's approach aims to balance inflation control with the encouragement of investment and trade, providing a predictable framework for economic participants. This consistent policy framework is intended to provide predictability for businesses and investors operating within Jordan, reducing uncertainty and encouraging long-term planning. The bank's continued monitoring of domestic and international economic conditions informs these decisions, ensuring that monetary policy remains responsive yet firm in its commitment to stability. This stability in monetary policy rates reflects the CBJ's confidence in the economy's resilience and its ongoing efforts to mitigate potential risks and sustain economic progress.
