Jordan ranks third globally in "Sound Money": Dinar stability is a pillar of confidence

Economic experts believe that this progress is not limited to achieving an advanced ranking in an international index, but reflects the importance of the Jordanian monetary and banking system in consolidating confidence in the Dinar, reducing risks associated with price and exchange rate fluctuations, and enhancing the ability of individuals and companies to engage in financial planning in an unstable regional and international environment.

However, the economic importance of this achievement goes beyond maintaining monetary stability itself; the most prominent challenge lies in building on this advantage to enhance Jordan's investment attractiveness, stimulate productive projects, increase exports, and generate job opportunities, ensuring that the impact of monetary confidence translates into economic activity and living standards.

The "Sound Money" component measures the ability of the monetary environment to provide a stable currency through a set of criteria related to inflation levels, growth of the money supply, price stability, and the ability to hold bank accounts in foreign currencies.

According to the report's results, Jordan scored 9.59 out of 10 in this component, ranking third globally, a result that highlights the position of monetary stability among the strengths of the national economy.

At the level of the general Economic Freedom Index, Jordan ranked 50th globally out of 165 countries and territories covered by the report, scoring 7.38 out of 10. It also ranked 25th globally in the Legal System and Property Rights component, with the same result of 7.38 points, which reflects a varying performance among the components covered by the index, and opens the way for continuing to develop the regulatory environment alongside maintaining monetary gains. These results gain their importance from their connection to the economy's ability to provide a more predictable environment, especially in light of the reliance of broad sectors of economic activity on imports, and the need for companies to manage their costs and financial obligations in light of global market fluctuations.

Al-Mahrouq: Monetary stability is the foundation of confidence in the economy

The Director General of the Association of Banks in Jordan, Maher Al-Mahrouq, said that the Kingdom's attainment of third place globally in the "Sound Money" component represents an important achievement that strengthens its position on the map of global monetary stability and provides a supportive indicator of confidence in the Jordanian monetary environment.

Al-Mahrouq added that the importance of the result stems from the nature of the criteria measured by the component, primarily inflation and its stability, the growth of the money supply compared to real economic activity, and the ability to hold bank accounts in foreign currencies, which are factors that influence the decisions of individuals and companies regarding savings, financing, and investment. He pointed out that local monetary indicators support this reading; total foreign reserves reached about $28.47 billion at the end of September 2026, while the inflation rate recorded 2.26% during the first nine months of the year, according to the data he referred to.

He explained that monetary stability reduces the uncertainty surrounding economic decisions and gives investors and companies a greater ability to estimate the costs and future revenues of projects, manage cash flows, and set financial plans for the medium and long term.

At the household level, price stability contributes to reducing the erosion of the purchasing power of income and savings, especially for those with fixed incomes.

As for companies, it helps in balancing budgets, estimating operating costs, and managing financial obligations, while the stability of the Dinar exchange rate against the Dollar reduces some of the risks associated with transactions denominated in this currency. Al-Mahrouq pointed out that confidence in the Dinar is also reflected in the banking sector by supporting the stability of deposits and strengthening the base of resources available to finance the economy, in addition to helping banks and their clients assess risks and repayment capacity more clearly.

Al-Mahrouq emphasized that maintaining this position requires building on monetary stability by developing the business environment, facilitating investment, and raising productivity, which helps in transforming confidence in the economy into new projects, productive expansions, and job opportunities.

He stressed the pivotal role played by the Central Bank of Jordan in maintaining monetary stability and confidence in the Dinar by managing interest rates and liquidity in a manner commensurate with local and external variables, confirming that confidence in the currency is accumulated over years of consistent policies and the ability to deal with shocks.

Al-Sarhan: Dinar stability reduces import risks and enhances investment attractiveness

For his part, financial expert Mohammad Al-Hadab Al-Sarhan said that Jordan's attainment of third place globally in the "Sound Money" index carries an economic significance that goes beyond the international classification, as it reflects the Kingdom's ability to maintain monetary stability in a regional environment characterized by continuous economic and geopolitical fluctuations. He explained that the stability of the currency's value and inflation discipline strengthen confidence in the national economy and give investors, households, and companies a greater ability to plan and make long-term financial decisions.

Al-Sarhan attributed this result to the monetary policies pursued by the Central Bank of Jordan over the years, primarily maintaining the stability of the Dinar exchange rate against the Dollar, managing liquidity in a way that supports monetary stability, and strengthening confidence in the national currency and the banking system.

He pointed out that the stability of the exchange rate is of particular importance in Jordan, given the economy's reliance on imports to meet a significant part of its needs for energy, goods, and raw materials. Dinar stability helps limit the transmission of currency price fluctuations to the cost of imports and reduces the exchange risks faced by companies and investors.

He indicated that exchange rate stability does not isolate the Jordanian economy from rising global prices, but it limits the additional pressures resulting from the decline in the value of the local currency, which constitutes an important advantage during periods of international market turmoil. Foreign reserves and the strength of the banking sector also enhance the ability of monetary policy to face external shocks.

Regarding investment, Al-Sarhan explained that monetary stability contributes to reducing the risks associated with dealing in Dinars and estimating future cash flows, which can support the attractiveness of long-term investments, especially in the sectors of industry, infrastructure, and capital-intensive projects.

He added that the investor's ability to estimate future revenues and costs with a greater degree of clarity helps them make expansion decisions, although this advantage does not automatically mean a decrease in the cost of financing or an increase in the volume of investments, given that investor decisions are influenced by global interest rates, credit risks, and public finances.

He pointed out that the 25th rank achieved by Jordan in the economic regulations component highlights the importance of integration between monetary stability and the business environment, noting the need to continue addressing challenges related to establishing projects, expanding them, and obtaining financing.

Al-Sarhan emphasized that sustaining the achievement requires maintaining the credibility of monetary policy, the adequacy of foreign reserves, and the soundness of the banking system, in parallel with economic policies that promote production, exports, and foreign currency inflows.

He called for utilizing the index results in investment promotion in a more specialized manner by highlighting Dinar stability and inflation discipline within investment offers and feasibility studies, and linking these advantages to specific productive opportunities and clear operating costs.

Ayesh: Monetary policy is a strength for enhancing confidence and investment

In turn, economic expert Hossam Ayesh said that Jordan's attainment of third place globally in the "Sound Money" component reflects the level of confidence in the monetary and banking policies in the Kingdom and confirms the importance of monetary stability as one of the basic pillars of confidence in the national economy and its investment attractiveness.

Ayesh explained that the importance of the index lies in highlighting the ability of the monetary environment to provide conditions conducive to attracting foreign investments by strengthening confidence in the banking sector, allowing for transactions in various currencies, and providing a stable environment that helps investors manage their funds and transfer them according to their needs.

He pointed out that the freedom to open bank accounts in foreign currencies, along with exchange rate stability and disciplined inflation rates, constitute important elements in the economic and investment system, and help investors manage their financial transactions with greater clarity and confidence. He added that the Jordanian banking sector represents one of the fundamental pillars of economic, investment, and living activity, given its role in financing economic activities, attracting investments, supporting financial and monetary stability, and enhancing the economy's ability to withstand shocks.

He indicated that the efficiency of monetary and banking management can support economic growth opportunities, increase exports, and attract investments, in addition to enhancing Jordan's ability to promote its economic opportunities and expand its financial and trade relations with global markets. Ayesh emphasized that the advanced rating in the "Sound Money" index represents a success story that should be built upon, rather than merely being satisfied with what has been achieved, stressing the importance of continuing to develop and modernize monetary policy tools in a way that maintains the achieved confidence and enhances the ability to deal with future variables.

From Monetary Stability to Growth.. The Next Economic Challenge

The advanced ranking achieved by Jordan in the "Sound Money" pillar reflects the importance of monetary stability as a cornerstone of economic confidence, especially in light of regional and international challenges that impose continuous pressure on economies and markets.

However, maintaining this stability and maximizing its returns requires a parallel economic path that links the robustness of the monetary system with expanding the production base, improving the business environment, boosting exports, and increasing the ability of companies to grow and expand.

Currency stability gives investors a clearer basis for assessing risks, but it does not replace the need for viable investment opportunities, a flexible regulatory environment, effective procedures for establishing and expanding businesses, and sources of funding that match project needs.

Hence, the importance of dealing with the international ranking emerges as an opportunity to enhance confidence in the Jordanian economy and promote its competitive advantages, in parallel with continuing reforms that raise productivity, stimulate investment, and support job creation.

In conclusion, the challenge lies not only in maintaining an advanced position in monetary stability indicators, but in translating this position into tangible economic value that reflects on investment, production, and employment, and supports the national economy's ability to achieve more sustainable and inclusive growth.