Dr. Hamad Kasasbeh

Jordan’s monetary policy has long been characterized by a balanced and forward-looking approach that has enabled the national economy to remain resilient amid a volatile regional and global environment. At the core of this resilience stands the Central Bank of Jordan, whose role rests on two closely linked pillars: maintaining monetary stability—through price stability and a stable exchange rate for the Jordanian dinar—and safeguarding financial stability by ensuring a sound and resilient banking sector. Together, these pillars have strengthened confidence in the national economy and enhanced its capacity to absorb shocks.

This long-standing record of monetary stability is not merely a technical achievement; it represents a strategic choice that has supported the Jordanian economy across different phases and conditions. Its importance becomes even more pronounced at the present stage, as government policies move toward expanding the country’s growth horizon. The year 2026 is widely viewed as a pivotal milestone for launching major projects in infrastructure, investment, and production. In this context, monetary stability must move beyond preservation and be actively leveraged to support long-term investment and sustainable economic growth.

There is broad consensus that monetary stability is a fundamental prerequisite for attracting investment, particularly when it is reflected in strong confidence in the financial and banking system. In this regard, the credibility built by the Central Bank of Jordan has become a clear competitive advantage, especially within an increasingly unstable regional environment. Today, this stability—combined with trust—is seen as a key factor for investors seeking safety and continuity rather than short-term returns. Such conditions are essential for supporting the financing needs of large-scale development projects in the coming phase.

Within this framework, an important policy shift has begun to take shape. After a period of monetary tightening that successfully contained global inflationary pressures, protected purchasing power, and preserved the attractiveness of the dinar, monetary policy is gradually moving toward a more accommodative stance. With global interest rates expected to continue declining in 2026, Jordan appears well positioned to benefit from this trend. Lower financing costs would provide both the government and the private sector with improved access to funding for major projects, while maintaining overall macroeconomic stability.

At the same time, Jordan’s banking sector represents a substantial financial base, characterized by high liquidity levels and strong capital adequacy ratios. This strength reflects the Central Bank’s success in preserving financial stability. As a result, there is significant potential to expand bank lending, particularly to small and medium-sized enterprises, which form the backbone of the national economy. However, unlocking this potential requires a more integrated government effort to bridge the gap between available banking liquidity and the financing needs of these enterprises. This can be achieved through practical measures such as credit risk mitigation, expanded loan guarantee programs, faster judicial and enforcement procedures, and improved credit information systems.

In conclusion, monetary and financial stability in Jordan is no longer the subject of debate. The real question lies in how to maximize its benefits and deploy it more effectively in support of economic growth. As the government moves forward with its ambitious 2026 projects, this solid record of stability provides the credibility needed to attract foreign investment, stimulate growth, and reinforce confidence in the national economic trajectory. The true value of monetary stability lies not only in its continuity, but in its ability to open new opportunities for growth, create jobs, and support a more dynamic and sustainable economic future for Jordan.