Identifier
Created
Classification
Origin
08AMMAN2799
2008-10-07 06:42:00
UNCLASSIFIED
Embassy Amman
Cable title:
FOREIGN CURRENCY RESERVES CONTINUE TO RISE AFTER MARCH'S
how-toVZCZCXYZ0009 RR RUEHWEB DE RUEHAM #2799 2810642 ZNR UUUUU ZZH R 070642Z OCT 08 FM AMEMBASSY AMMAN TO RUEHC/SECSTATE WASHDC 3630 INFO RUEHGB/AMEMBASSY BAGHDAD 6082 RUEHLB/AMEMBASSY BEIRUT 2925 RUEHEG/AMEMBASSY CAIRO 3804 RUEHDM/AMEMBASSY DAMASCUS 3987 RUEHJI/AMCONSUL JEDDAH 0836 RUEHJM/AMCONSUL JERUSALEM 5191 RUEHRH/AMEMBASSY RIYADH 2033 RUEHTV/AMEMBASSY TEL AVIV 1355 RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS AMMAN 002799
SIPDIS
STATE FOR NEA/ELA AND EEB
E.O. 12958: N/A
TAGS: EFIN ECON PGOV JO
SUBJECT: FOREIGN CURRENCY RESERVES CONTINUE TO RISE AFTER MARCH'S
DEBT PAYMENT
REF: A) AMMAN 2369
B) 07 AMMAN 4207
UNCLAS AMMAN 002799
SIPDIS
STATE FOR NEA/ELA AND EEB
E.O. 12958: N/A
TAGS: EFIN ECON PGOV JO
SUBJECT: FOREIGN CURRENCY RESERVES CONTINUE TO RISE AFTER MARCH'S
DEBT PAYMENT
REF: A) AMMAN 2369
B) 07 AMMAN 4207
1. (U) The Central Bank of Jordan (CBJ) announced that its foreign
currency reserves had risen to $7.56 billion by the end of August
2008, a 13% increase over the $6.69 billion level in August 2007.
These current reserves are equivalent to about five months of
Jordan's import of goods and services. The current levels are
noteworthy because they represent a quick and sharp bounce from the
$5.4 billion reserve level in March after the conclusion of the $2.1
billion debt buyback transaction with Jordan's Paris Club creditors.
The current relatively high level of reserves represents a strong
dinar and a healthy overall balance of payments.
2. (U) The largest contributors to the increased reserves are from
inward foreign direct investment flows, tourism, and expatriate
remittances. Income from tourism was $1.55 billion in the first
seven months of 2008, an increase of 16% over the same period in
2007. Official remittances of Jordanians working overseas reached
$3 billion in 2007, an estimated 19% of GDP and unofficial
remittances, which are not transferred through banks, increase the
total by 25% (ref B). Remittance levels for 2008 are expected to be
similar. Jordan was ranked fourth in the World Bank's 2007 list of
top recipient countries of remittances.
Visit Amman's Classified Website at
http://www.state.sgov.gov/p/nea/amman
BEECROFT
SIPDIS
STATE FOR NEA/ELA AND EEB
E.O. 12958: N/A
TAGS: EFIN ECON PGOV JO
SUBJECT: FOREIGN CURRENCY RESERVES CONTINUE TO RISE AFTER MARCH'S
DEBT PAYMENT
REF: A) AMMAN 2369
B) 07 AMMAN 4207
1. (U) The Central Bank of Jordan (CBJ) announced that its foreign
currency reserves had risen to $7.56 billion by the end of August
2008, a 13% increase over the $6.69 billion level in August 2007.
These current reserves are equivalent to about five months of
Jordan's import of goods and services. The current levels are
noteworthy because they represent a quick and sharp bounce from the
$5.4 billion reserve level in March after the conclusion of the $2.1
billion debt buyback transaction with Jordan's Paris Club creditors.
The current relatively high level of reserves represents a strong
dinar and a healthy overall balance of payments.
2. (U) The largest contributors to the increased reserves are from
inward foreign direct investment flows, tourism, and expatriate
remittances. Income from tourism was $1.55 billion in the first
seven months of 2008, an increase of 16% over the same period in
2007. Official remittances of Jordanians working overseas reached
$3 billion in 2007, an estimated 19% of GDP and unofficial
remittances, which are not transferred through banks, increase the
total by 25% (ref B). Remittance levels for 2008 are expected to be
similar. Jordan was ranked fourth in the World Bank's 2007 list of
top recipient countries of remittances.
Visit Amman's Classified Website at
http://www.state.sgov.gov/p/nea/amman
BEECROFT