CBJ

The Central Bank of Jordan (CBJ) is the monetary policy-making agency and financial supervisory authority of the Hashemite Kingdom of Jordan. Its main responsibilities are to maintain monetary and financial stability, as well as to promote the healthy development of the financial sector and support the implementation of national economic policies.

Established with the legal framework

Central Bank of Jordan was established in 1959 under the Central Bank Act of 1959 and has since been amended several times. Its independence is guaranteed by law to enable it to carry out its duties freely and without interference from the Government.

Main responsibilities for

1. monetary policy formulation: Central banks are responsible for formulating and implementing monetary policy to maintain price stability, promote economic growth and employment, and maintain exchange rate stability.
2. Currency issuance: The Central Bank is the sole issuing authority of the Jordanian Dinar (JOD) and is responsible for the issuance and circulation of currency.
3. Financial regulation: Central banks regulate banks and other financial institutions to ensure that they comply with laws and regulations and maintain the stability of the financial system.
4. Payment system supervision: The central bank supervises and manages the payment system to ensure the security, efficiency and stability of the payment system.
5. Foreign exchange management: The central bank manages the country's foreign exchange reserves, implements foreign exchange policies, and supervises the foreign exchange market.
6. Gold and silver reserves: The Central Bank of Jordan is responsible for managing and supervising the country's gold and foreign exchange reserves.
7. Financial development: Central banks promote the reform and development of the financial sector, including encouraging financial inclusion and the provision of financial services.
8. Anti-Money Laundering and Counter-Terrorism Financing: Central banks are involved in the development and implementation of anti-money laundering (AML) and counter-terrorism financing (CFT) policies and regulations to combat illicit financial flows.

Performance and policy in recent yearsAccording

to the information provided, the Central Bank of Jordan has successfully maintained monetary and financial stability in recent years, even in the face of global economic uncertainty. For example, in 2021, it maintained a relatively low benchmark interest rate (2.5%) to support economic growth. At the same time, the financial sector it regulates has attracted foreign direct investment, although in 2018 it had decreased.

In addition, the Central Bank of Jordan has made achievements in the management of foreign exchange and gold reserves, which have reached record highs according to 2023 data, indicating that it has succeeded in increasing the country's economic buffer zone, ensuring sufficient reserves to meet import needs.

ConclusionThe

Central Bank of Jordan, as the core institution of Jordan's financial system, plays a key role in maintaining monetary and financial stability and promoting economic development. Through its independent monetary policy formulation and financial regulation, as well as the effective management of foreign exchange and gold reserves, the central bank supports Jordan's competitiveness in the global economy and ensures the resilience of the financial system. As the domestic and international economic environment changes, the Central Bank of Jordan will continue to adjust its strategies and policies to meet new challenges and seize opportunities.