Deposit dollarization rate drops to 18% by November
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.
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.
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.
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Deposit dollarization rate drops to 18% by November
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