Dr. Hamza Alakaleek

In the realm of public policy and macroeconomics, central banks stand as pillars of stability, largely insulated from political fluctuation. In Jordan, the Central Bank of Jordan has evolved into a mature technocratic institution, exercising its mandate with quiet professionalism beyond daily media debates. The gap between technical complexity and emotionally driven political discourse often produces misunderstanding of sound banking practice, a reality evident in several recent files managed by the Bank.

At the beginning of 2025, the Central Bank faced accusations of squandering national assets through the alleged sale of gold reserves.

Yet careful analysis of audited financial data and investment policy shows a different picture. What occurred was not dissipation, but advanced sovereign portfolio management, using arbitrage tools to enhance the value of national reserves when global gold prices reached historic highs.

Gold reserve management within central banks is a dynamic process governed by strict standards balancing liquidity, safety, and return. In early 2025, as gold prices exceeded four thousand dollars per ounce, the Central Bank of Jordan acted as a professional steward of national wealth. Public claims about massive gold sales ignored the distinction between permanent liquidation and restructuring operations intended to optimize long term performance.

Later financial statements confirmed this assessment. Rather than declining, gold reserves expanded substantially. By October 2025 their value reached about 6.576 billion dinars, compared with 4.257 billion dinars at the end of 2024, an increase exceeding 54% percent. Gold volume rose from 2.304 million ounces to 2.335 million ounces, reflecting sales near peaks followed by strategic repurchases at favorable prices.

This strategy mirrors global trends during 2024 and 2025, as central banks reassessed gold as a safe haven amid currency volatility and escalating geopolitical risk. Alongside reserve management, inflation control remained a central responsibility. While many economies suffered severe price pressures, Jordan maintained stability through disciplined monetary tightening, despite criticism at the time, supported by complementary government measures.

The outcomes are visible in inflation figures. Rates fell from 4.2 percent in 2022 to 2.1 percent in 2023, then to 1.56 percent in 2024, and about 1.8 percent during the first eleven months of the current year. Such stability protects household income, preserves savings, and strengthens investor confidence, contributing to net foreign direct investment inflows of 744.4 million dinars in the first half of 2025.

Monetary success is ultimately judged externally through international credit rating agencies. In 2024 Jordan achieved a historic upgrade when Standard and Poor’s raised its rating to BB- with a stable outlook, the first such improvement in 21 years. The agency cited economic resilience, structural reform progress, a strong banking sector, and the Central Bank’s role in preserving monetary stability.

Moody’s followed by upgrading Jordan to Ba3, highlighting effective fiscal and monetary coordination and the country’s ability to absorb external shocks. Jordan sustained these gains through 2025 despite regional turmoil, including the prolonged war in Gaza and renewed conflict involving Iran, underscoring policy credibility during periods of heightened uncertainty.

These upgrades carry tangible economic value. They lower borrowing costs, enhance the appeal of Jordanian debt instruments, and reinforce confidence in the dinar. Their impact appeared clearly in the successful October 2025 issuance of seven hundred million dollars in Eurobonds, priced one hundred seventy five basis points below the 2023 issue.

Confidence is further supported by record foreign reserves of 24.59 billion dollars in November 2025, sufficient to cover more than eight point eight months of imports, well above international adequacy benchmarks. This buffer strengthens monetary sovereignty and reassures markets of the Central Bank’s capacity to defend the national currency under stress.

In conclusion, central banking decisions are shaped by data, analysis, and professional judgment, not by emotional political rhetoric. Simplistic narratives often ignore the technical depth of monetary policy and distort public understanding. Jordan’s experience demonstrates that prudent reserve management, disciplined inflation control, and institutional credibility reinforce one another. The evidence is clear and measurable: gold holdings are growing, prices remain stable, creditworthiness is improving, and investor confidence is strengthening. Maintaining this professional course remains essential for safeguarding financial stability, supporting sustainable growth, and securing a resilient economic future for Jordan and its citizens.

This path affirms trust between institutions and society, encourages long term planning, and positions the economy to withstand shocks while pursuing inclusive prosperity grounded in stability, transparency, and sound governance. It also illustrates how technocratic independence, when paired with accountability, delivers outcomes that serve national interests beyond short term politics and strengthens confidence in Jordan’s economic stewardship at home and abroad for future generations nationwide stability.