Amman, Feb. 16 (Petra) -- Growing remittances from Jordanians working abroad are playing an increasingly important role in reinforcing the Kingdom’s financial and monetary stability, according to Firas Sultan, representative of the financial and banking sector at the Jordan Chamber of Commerce (JCC).
Sultan said the steady rise in remittance inflows is strengthening demand for the Jordanian dinar while providing solid backing for the country’s foreign currency reserves and overall balance of payments position. Beyond macroeconomic indicators, these inflows are also stimulating domestic consumption and energizing activity across multiple sectors of the economy.
Workers’ remittances climbed by 4.5 percent last year, reaching $4.47 billion, a development Sultan described as a clear sign of expatriate Jordanians’ continued confidence in the national economy and the robustness of the local banking system. Sustained growth in these transfers, he noted, reflects the economy’s capacity to secure reliable external financial inflows despite global uncertainties.
The positive trend in remittances has coincided with improved tourism performance. Tourism revenues rose by 4.1 percent in January to approximately $709 million, further diversifying Jordan’s sources of foreign currency. Sultan emphasized that this balance between remittance inflows and tourism income helps ease pressure on the current account and enhances the economy’s resilience in the face of external shocks.
He also pointed to the banking sector’s advanced infrastructure and modern payment systems, which are well-equipped to handle increasing volumes of transfers efficiently and securely. A significant portion of remittances is converted into dinars for spending and investment, supporting exchange rate stability and enabling the central bank to maintain comfortable foreign reserve levels.
Beyond their financial impact, remittances contribute directly to social stability by improving household incomes. They expand purchasing power, enable greater spending on education and healthcare, and support investment in small and medium-sized enterprises, factors that help drive local growth and job creation.
Sultan highlighted ongoing modernization within banks and money transfer companies, including the expansion of digital services and stronger ties with global payment networks. These improvements have reduced transaction costs, accelerated processing times, and enhanced Jordan’s competitiveness as a regional financial hub.
He concluded that the parallel growth in remittances and tourism revenues strengthens investor confidence and underscores the soundness of Jordan’s economic fundamentals. Preserving a stable and investment-friendly environment, he said, will be key to attracting additional capital inflows and sustaining long-term economic growth.
//Petra// WH
