Amman, Oct. 30 (Petra) - The Open Market Operations Committee of the Central Bank of Jordan (CBJ) has decided to implement a 25 basis point (bps) reduction in its Key Interest Rate and other monetary policy facility rates, effective this Sunday. This decision represents a measured monetary easing, strategically undertaken following the Committee’s comprehensive evaluation of domestic, regional, and global monetary conditions. Jordan’s macroeconomic fundamentals remain exceptionally strong. Foreign reserves at the CBJ reached a historic peak of $23.9 billion at the end of September 2025, providing import coverage for 9.1 months, which is triple the internationally accepted prudential benchmark and underscores deep monetary stability. Furthermore, the dollarization rate saw a favorable decline to 17.9 percent by the end of August 2025, while inflation is contained, stabilizing around 2 percent for the first three quarters, a level that aligns with CBJ forecasts and supports both purchasing power and the national economy's competitiveness. The domestic banking sector exhibits exceptional soundness. Total customer deposits climbed 5.5 percent year-on-year to 48.8 billion dinars at the end of August, and outstanding credit facilities grew by 3.3 percent to 35.7 billion dinars. Financial safety indicators (H1 2025) confirm this strength, with a Capital Adequacy Ratio (CAR) of 18 percent, among the highest in the region, and a robust statutory liquidity ratio of 142.4 percent, significantly exceeding the 100 percent requirement. External sector performance continues to deliver positive results. The Current Account deficit narrowed to 7.4 percent of GDP in H1 2025, a significant improvement from 8.3 percent in H1 2024, underpinned by an 18.7 percent increase in the services account surplus and a sharp 42.1 percent reduction in the investment income deficit. Net inflows of Foreign Direct Investment (FDI) saw a substantial surge of 36.4 percent year-on-year, reaching $1.0 billion in H1 2025. Concurrently, tourism income jumped 6.8 percent to $6.0 billion (Q1-Q3 2025), workers' remittances increased 3.1 percent to $3.0 billion (first eight months), and total exports expanded by 7.7 percent to $9.5 billion over the same eight-month period. Domestically, the national economy sustained solid momentum, recording 2.8 percent GDP growth in Q2 2025, following 2.7 percent growth in Q1. The CBJ affirms its unwavering commitment to preserving monetary and financial stability, which is an essential prerequisite for achieving sustained economic growth and comprehensive macroeconomic stability across the Kingdom.

//Petra//AA