ammonnews.net

Ammon News - Economists believe that the depreciation of the euro against the US dollar will benefit Jordan's economy and finances by lowering the trade deficit with European Union countries and bolstering foreign exchange reserves.

They also stated that a cheaper euro meant cheaper imports from the EU, as well as a lower cost of servicing the kingdom's non-US dollar loans, as reported by Petra.

In the first three months of this year, trade between Jordan and European Union member states amounted to approximately JD1.029 billion dinars, with the balance heavily skewed in favor of the bloc countries, according to official data.

The Kingdom's imports from EU countries totaled approximately JD939 million, while exports did not exceed JD90 million, resulting in a JD849 million deficit.

Head of the Jordanian European Business Association (JEBA), Ali Murad, noted that the Euro has dropped by around 20 percent since the start of 2022, which will have an impact on the Kingdom's trade deficit with the bloc.

Iyad Abu Haltam, Vice-President of the East Amman Industrial Investors Association, agrees that the euro's low exchange rate will reduce Jordan's trade deficit with the EU, but warns that a cheaper euro will boost the appetite for imports, harming local products.

According to Abu Haltam, the damage may result from importing duty-free European goods, despite the fact that similar locally-produced alternatives are readily available on the market.