The Central Bank Of Jordan (CBJ) Is The Monetary Policy-making Body And Financial Regulatory Authority Of The Hashemite Kingdom Of Jordan. Its Main Responsibility Is To Maintain Monetary Stability, Financial Stability, And To Promote The Healthy Development Of The Financial Sector And Support The Implementation Of National Economic Policies.
Establishment And Legal Framework
The Central Bank Of Jordan Was Established In 1959 Under The Central Bank Act Of 1959 And Has Been Amended Several Times Since Then. Its Independence Is Guaranteed By Law To Enable It To Perform Its Duties Freely And Without Government Interference.
Main Responsibilities
- Monetary Policy Making: The Central Bank Is Responsible For Formulating And Implementing Monetary Policy In Order To Maintain Price Stability And Promote Economic Growth And Employment, While Maintaining Exchange Rate Stability.
- Currency Issuance: The Central Bank Is The Sole Issuer Of The Jordanian Dinar (JOD) And Is Responsible For The Issuance And Circulation Of Currency.
- Financial Regulation: The Central Bank Supervises Banks And Other Financial Institution Groups To Ensure That They Comply With Laws And Regulations And Maintain The Stability Of The Financial System.
- Payment System Regulation: The Central Bank Supervises And Manages Payment Systems To Ensure The Security, Efficiency And Stability Of Payment Systems.
- Foreign Exchange Management: The Central Bank Manages The Country's Foreign Exchange Reserves, Implements Foreign Exchange Policies, And Regulates The Foreign Exchange Market.
- Gold And Silver Reserves: The Central Bank Of Jordan Is Responsible For Managing And Supervising The Country's Gold And Foreign Exchange Reserves.
- Financial Development: The Central Bank Promotes Financial Sector Reform And Development, Including Encouraging Financial Inclusion And The Provision Of Financial Services.
- Anti-Money Laundering And Counter-Terrorism Financing: The Central Bank Participates 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 Policies In Recent Years
According To The References Provided, The Central Bank Of Jordan Has Managed To Maintain Monetary And Financial Stability In Recent Years, Even In The Face Of Global Economic Uncertainties. For Example, In 2021, It Maintained A Relatively Low Base Rate (2.5%) To Support Economic Growth. At The Same Time, The Financial Sector It Regulates Attracted Foreign Direct Investment, Although These Investments Decreased In 2018.
In Addition, The Central Bank Of Jordan Has Made Achievements In The Management Of Foreign Exchange And Gold Reserves. According To 2023 Data, Both Foreign Exchange And Gold Reserves Have Reached A Record High, Indicating That It Has Succeeded In Increasing The Country's Economic Buffer And Ensuring Sufficient Reserves To Meet Import Demand.
Conclusion
As The Core Institution Of The Jordanian Financial System, The Central Bank Of Jordan Plays A Key Role In Maintaining Monetary And Financial Stability And Promoting Economic Development. Through Its Independent Monetary Policy Setting And Financial Supervision, As Well As 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. With The Changing Economic Environment At Home And Abroad, The Central Bank Of Jordan Will Continue To Adjust Its Strategies And Policies To Meet New Challenges And Seize Opportunities.
