The economic indicators recorded over the past several years provide important context for understanding the decision to reappoin Adel Al-Sharkas as Governor of the Central Bank of Jordan for another five year term. The figures are particularly significant when viewed against the Central Bank’s core responsibilities: preserving monetary stability, maintaining confidence in the national currency, and strengthening the resilience of the banking sector.

 

These outcomes should not be attributed to one individual alone. They reflect the collective and institutional efforts of the Central Bank and its staff, as well as the broader economic environment and policies pursued by different institutions. Nevertheless, the consistency of the indicators provides a useful basis for assessing the performance of the monetary and financial system during the Governor’s first term.

 

Foreign reserves provide a good starting point. They increased from around USD 18 billion at the end of 2021 to USD 28.4 billion at the end of August 2026, an increase of approximately USD 10.4 billion, or about 58 percent. This has strengthened the Central Bank’s capacity to absorb external shocks while supporting confidence in the Jordanian dinar and the stability of the exchange rate.

 

The importance of this increase becomes clearer when reserves are considered alongside inflation. The accumulation of reserves has taken place while inflation remained relatively contained, averaging around 2 percent over the period under consideration. For a small and open economy such as Jordan, maintaining monetary stability amid regional and global uncertainty is a significant policy challenge.

 

Exchange rate stability cannot be considered separately from foreign reserves, confidence in the domestic currency, liquidity conditions, interest rates, and banking supervision. It is the result of an integrated monetary framework. The challenge is therefore not simply to preserve stability, but to do so while limiting the cost that restrictive monetary conditions can impose on economic activity.

 

The second major area is the performance and resilience of the banking sector. Deposits increased from JOD 36.8 billion in 2020 to JOD 51.6 billion at the end of July 2026, an increase of almost 40 percent. Credit facilities increased from JOD 28.6 billion to JOD 37.2 billion, or around 30 percent.

 

More important than the expansion itself is that it occurred alongside strong resilience indicators. The capital adequacy ratio stood at 18.2 percent in the first half of 2026, while the statutory liquidity ratio reached 146.6 percent. These figures indicate that banks maintained substantial capital and liquidity buffers while continuing to provide financial intermediation.

 

Profitability also improved. Return on equity increased from 5.1percent in 2020 to 11.5 percent in the first half of 2026, while return on assets increased from 0.6 percent to 1.3 percent. At the same time, asset quality remained broadly stable. Non-performing loans stood at 5.6 percent of total loans in the first half of 2026, compared with 5.5 percent in 2020, while their coverage ratio increased from 71.5 percent to 77.3 percent.

 

Another important indicator is dollarisation. Its share declined from 20.02 percent in 2020 to 17.59 percent in 2026. In an economy where exchange rate stability is central to the monetary framework, declining dollarisation alongside exchange rate stability is consistent with continued confidence in the domestic currency.

 

The financial system has also undergone significant digital transformation. The value of transactions through the mobile payment system increased from JOD 1.08 billion in 2020 to JOD 6.34 billion in 2025, while the number of transactions increased from around 12million to more than 102 million. The growth of the instant payment system, CliQ, has been even more striking. In 2025, transaction value reached around JOD 20 billion, with more than 167 million transactions.

 

These developments show that the Central Bank’s role has expanded beyond traditional monetary policy to include financial infrastructure, digital payments, financial inclusion, and financial technology.

 

Yet monetary stability alone cannot solve Jordan’s broader economic challenges. Growth, productivity, unemployment, investment and the creation of productive employment require coordinated monetary, fiscal, investment and structural policies.

 

This is the key challenge for the next five years. Preserving monetary and financial stability will remain essential, but stability should also provide a foundation for stronger economic performance. The financial system needs to channel more credit toward productive investment, expand financing for small and medium sized enterprises, support innovation and exports, and strengthen the connection between finance, investment, employment and growth.