Jordan's foreign currency reserves reach $17.4 billion — CBJ

AMMAN — Jordan possesses foreign currency reserves worth $17.4 billion, sufficient to cover imports for 7.6 months, which is above the international standard of three months, Adel Sharkas, governor of the Central Bank of Jordan (CBJ), said on Wednesday.

Highlighting the importance of these comfortable foreign reserves, Shrakas said that the reserves enable the Kingdom to influence exchange rates, promote a stable economic climate and strengthen the confidence of foreign creditors and investors in the national economy, as well as underscores Jordan's ability to meet its financial obligations on the international stage.

The increase in foreign exchange reserves serves as a positive indicator of Jordan's financial and economic stability and reflects the sound monetary policy pursued by the CBJ. It would also attract foreign investment and increase the confidence of global institutions in the country's economy, according to the Jordan News Agency, Petra.

The increase in Jordan's exports in the current year, coupled with growth recorded by the tourism sector, increased remittances from expatriates and a rise in foreign investment inflows, have combined to drive the increase in foreign reserves.

CBJ's data showed a 15.3 per cent increase in the Kingdom's exports of goods and services, reaching $11 billion in the first half of this year, which pushed the trade deficit down by 35.4per cent to $3.1 billion during the same period.

Jordanian expatriates' remittances increased to a total of $2.254 billion in the first eight months of the year. At the same time, foreign direct investment inflows into the Kingdom went up to about $776 million in the first half of 2023, showing an increase of 20.9 per cent compared to the corresponding period in 2022.

The surge in tourism receipts has also played a key role in boosting reserves. During the January-September period,   tourism income increased by 37.7per cent, accumulating to $5.819 billion.