Press Release No. 95/13

Press Release: Jordan Accepts Article VIII Obligations

March 2, 1995

The Government of Jordan has notified the International Monetary Fund (IMF) that it has accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF Articles of Agreement, with effect from February 20, 1995. IMF members accepting the obligations of Article VIII undertake to refrain from imposing restrictions on the making of payments and transfers for current international transactions or from engaging in discriminatory currency arrangements or multiple currency practices without IMF approval. A total of 100 countries have now assumed Article VIII status.

Two of the purposes of the IMF, as stated in its Articles of Agreement, are to facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income, and to assist in the establishment of a multilateral system of payments in respect of current transactions between IMF members. In seeking to achieve these objectives, the IMF exercises firm surveillance over the exchange rate policies of its members, and oversees the elimination of exchange restrictions that hamper the growth of world trade.

By accepting the obligations of Article VIII, Jordan gives confidence to the international community that it will continue to pursue sound economic policies that will obviate the need to use restrictions on the making of payments and transfers for current international transactions, and thereby contribute to a multilateral payments system free of restrictions.

Jordan has made significant progress in recent years in liberalizing the economy and enhancing its outward orientation. The Jordanian authorities are continuing a comprehensive program of adjustment and reform aimed at sustaining high economic growth, maintaining low inflation, and securing a strong balance of payments position. To these ends, policy measures have been taken to reduce the fiscal deficit, contain domestic liquidity expansion, strengthen the structure of the budget, improve financial intermediation, and liberalize the trade and exchange systems. The program is supported by a three-year arrangement from the IMF under the extended Fund facility (see Press Releases Nos. 94/36 and 95/11).

Jordan joined the IMF on August 29, 1952 and its quota¹ is SDR 121.7 million (about US$182 million).