Ammon News - The Central Bank of Jordan (CBJ) revealed that the deposit dollarization rate retreating to 18% – signals deep-seated market confidence in the national currency’s terminal value.

Deposit dollarization occurs when a significant portion of a country's bank deposits are denominated in U.S. dollars rather than the local currency.

The inflation rate during 2025 reached approximately 1.77%, which is a suitable level that would maintain the competitiveness of the national economy and the purchasing power of the national currency, according to a statement issued by the bank.

The CBJ’s balance sheet continues to show exceptional strength, with gross foreign currency reserves surging past the $26 billion mark as of January 2026. This liquidity buffer provides a formidable 9.0-month import cover, vastly outperforming international safety thresholds.

The banking sector’s fundamentals remain robust, characterized by high capital adequacy and prudent risk management. Total deposit growth accelerated 7.2% year-on-year to JD 49.8 billion, while the credit facility stock expanded by 3.3% to JD 36.2 billion. This expansion occurs against a backdrop of high liquidity and healthy Return on Equity (ROE), underscoring the sector's resilience and its capacity to act as a primary transmission mechanism for economic funding at sustainable cost-of-capital levels.

Jordan’s external account performance has likewise exceeded baseline expectations. Tourism receipts – a critical driver of the services balance – ascended 7.6% to reach $7.8 billion in 2025. This was bolstered by a 4.6% uptick in worker remittances and a dynamic 7.7% growth in total exports, which reached $12.1 billion.

Notably, the Kingdom’s capital account saw a significant boost as net Foreign Direct Investment (FDI) inflows spiked by 27.7%, totaling $1.5 billion through the third quarter of 2025. These collective tailwinds pushed real GDP growth to 2.75% during the same period, suggesting a strong secular recovery.

Moving forward, the CBJ remains data-dependent, pledged to calibrate its monetary stance in response to global interest rate trajectories to ensure enduring financial equilibrium.