The CBJ is committed to the maintenance of the Jordanian dinar's peg to the dollar, despite the associated lack of monetary flexibility. The peg has instilled monetary confidence and has not substantially harmed competitiveness (perhaps because the US is one of Jordan's largest single export markets). Although the IMF has raised the issue of abolishing the peg during its annual Article IV consultations with the Jordanian authorities, on balance the Fund has come down in its favour on the grounds that it has ensured stability, and has helped to build confidence in the Jordanian currency over the past decade. In addition, according to the IMF, at present there is no evidence of a misalignment of the peg. As a result, we expect the CBJ to maintain the peg at JD0.709:US$1 throughout the forecast period. We also believe that the stock of international reserves will be sufficient to offset any pressure on the currency stemming from short-term liquidity problems or negative political developments.