Interest rates in Jordan expected to continue declining in 2025 – ABJ

AMMAN — Interest rates in Jordan are expected to continue to decline in 2025, according to Maher Mahrouq, President of the Association of Banks in Jordan (ABJ).

During a meeting of the parliamentary finance committee to review the association's budget as part of discussions on the general budget law for 2025 and the budget law for government entities, Mahrouq noted that interest rate adjustments, whether increases or decreases, will be in line with the pricing schedules specified in customers' contracts with their respective banks.

Mahrouq stressed that the monetary policy of the Central Bank of Jordan is focused on maintaining economic stability, according to Al Mamlaka TV.

He also highlighted the critical contribution of banks and the potash sector to the national economy, noting that together they generate 55 per cent of Jordan's income tax revenues.

Commenting on the policy of pegging the Jordanian dinar to the US dollar, Mahrouq emphasised its success since its introduction in 1995 and credited the policy with ensuring the strength of the dinar and promoting economic stability in the Kingdom.

The Central Bank of Jordan (CBJ) lowered last week interest rates on all monetary policy instruments by 25 basis points.

The decision was made during the eighth and final meeting of CBJ's Open Market Operations Committee in 2024, CBJ said.

The committee stressed the resilience of monetary indicators and the strength of the Jordanian dinar, which is supported by the CBJ's high foreign reserves, currently amounting to $21.1 billion, sufficient to cover the kingdom's imports of goods and services for 8.4 months. 

The inflation rate also remained stable at 1.5 per cent during the first 11 months of this year.

Mahrouq said that the total assets of Jordanian banks have reached JD70 billion.

He added that deposits in Jordanian banks have reached JD45 billion, while the total value of loans extended by these banks amounts to JD35 billion.