Jordan's net foreign reserves rose to a record $9.2 billion at end of June against $6.6 billion in the same period last year with healthy inflows into the local currency, central bank data showed on Friday.

Central Bank of Jordan (CBJ) figures obtained by Reuters attributed the rise in foreign reserves to strong capital inflows over the last twelve monthsfrom tourism, expatriate remittances and foreign direct investments.

Preliminary official figures also net show foreign reserves stood at a high $9.5 billion as of July 15, 2009, against $6.8 billion the same period last year. The country's foreign reserves stood at $7.7 billion at the end of 2008.

Despite the global downturn's impact on the economy which has slowed down growth and domestic consumption, the kingdom has not seen any steep falls in capital inflows or capital flight, officials say.

Bankers say the (CBJ) policy to allow a wider interest rate differential against the dollar in favour of the dinar had encouraged banks and depositors to keep their funds into dinar-denominated assets.

A main plank of monetary policy is the defence of the dinar, which is pegged to the dollar, a policy that the International Monetary Fund (IMF) says has served the national economy well.

Even Jordanian expatriates whose earnings were in foreign currencies were switching part of their savings into the dinar attracted by interest as high as six percent, bankers say.

The reserves which are denominated in U.S. dollars and cover over six months imports are nearly 60 percent in US dollars, 30 percent in euros and other currencies.

Jordanian monetary authority officials say they have no plans to change the composition of the country's healthy  currency reserves which are tracked to its international payments.-Reuters