Overview of the Central Bank of Jordan

Central Bank of Jordan

The Central Bank of Jordan (CBJ) is the monetary authority of the Hashemite Kingdom of Jordan. It is an autonomous corporate body with financial and administrative independence. The CBJ exercises its functions in accordance with the provisions of the Central Bank of Jordan Law No. (23) of 1971 and its amendments, based on a well-established institutional framework and effective governance, and in line with international best practices and standards.

1964

Establishment of the Central Bank of Jordan

100

Million Jordanian Dinars - Capital

60+ Years

Central banking operations

Historical Overview

The Establishment of the Central Bank of Jordan

Preparatory measures for establishing the Central Bank of Jordan commenced in the late 1950s. The Central Bank of Jordan Law was enacted in 1959, and the establishment procedures were completed to officially commence the operations of the CBJ on October 1, 1964, succeeding the Jordan Currency Board, which had been established in 1950. Since its establishment, the functions of the CBJ have continuously evolved, reflecting rapid economic and financial developments. The CBJ has played a pivotal role in conducting monetary policy and maintaining monetary stability. In 1995, the CBJ adopted a monetary policy framework based on a pegged exchange rate regime for the Jordanian Dinar (JOD) against the US Dollar (USD) at a central rate of 709 fils/USD. This policy framework has contributed to enhancing confidence in the national currency, supporting price stability, and creating a stable economic and financial environment. Furthermore, the supervisory mandate of the CBJ has expanded to encompass various components of the financial sector, including banks operating in the Kingdom, money exchange, financial, digital payment and transfer, credit information, and insurance companies, keeping pace with the development of Jordan’s financial system and the diversity of its services.

Establishment of the Jordan Currency Board

1950

Enactment of the Central Bank of Jordan Law

1959

The Central Bank of Jordan commenced its operations, succeeding the Jordan Currency Board

1964

Central Bank of Jordan Law No. (23) of 1971 and its amendments

1971

Adoption of a monetary policy framework based on a pegged exchange rate regime for the Jordanian Dinar (JOD) against the US Dollar (USD) at a central rate of 709 fils/USD.

1995

Objectives of the CBJ

Maintaining monetary stability in the Kingdom

Ensuring the convertibility of the Jordanian Dinar

Contributing to achieving the banking and financial stability in the Kingdom

Promoting the sustained economic growth in accordance with the general economic policies in the Kingdom

Functions of the CBJ

Formulating and implementing the monetary policies in the Kingdom.

Determining the regime and policy of the Dinar exchange rate.

Supervision and oversight of banks to ensure the soundness of their financial positions and the protection of the rights of depositors and shareholders in accordance with the provisions of the legislations in force and the rules of governance set by the CBJ pursuant to the instructions issued for this purpose.

Supervision and oversight of any financial institution subject to its supervision to ensure the soundness of its financial position in accordance with the provisions of the legislations in force and the governance rule set by the CBJ pursuant to the instructions issued for this purpose.

Organizing and developing the National Payment System to ensure the provision of safe and efficient payment, clearing and settlement systems in the Kingdom.

Regulating credit to achieve monetary and financial stability and the requirements of economic growth.

Issuing banknotes and coins.

Maintaining and managing the gold and foreign currency reserves of the Kingdom.

Adopting appropriate measures to address the economic and financial problems.

Acting as a banker for the banks and specialized credit institutions.

Acting as a banker and fiscal agent for the government and public entities.

Advising the government on the formulation and the manner of implementation of its fiscal and economic policy.

Setting the rules and controls necessary for the dealings between banks and financial institutions with their customers in a fair and transparent manner.

Increasing the public’s awareness on banking and financial activities.

Carrying out any other function normally performed by central banks, as well as any duties entrusted to it under this law, or any other law, or under any international agreement to which the government is a party.

Vision and Mission

Vision

Continue safeguarding monetary stability and contributing to achieving banking and financial stability, thereby supporting sustainable development in the Kingdom.

Mission

Maintaining monetary stability reflected in the stability of the Jordanian dinar exchange rate and the general price level, while contributing to providing an attractive and stimulating investment environment for sustainable development through providing an appropriate interest rate structure and applying micro and macro prudential supervision policies that contribute to achieving banking and financial stability. The CBJ also provides a safe and efficient payment environment, promotes financial inclusion, protects the financial consumer, and supports innovation and business development in the field of secure financial technology. For this purpose, the CBJ optimally utilizes its human, financial, physical, technical and knowledge resources.

Core Values :

Engagement: Loyalty at work, sense of responsibility and commitment towards CBJ, its employees and all stakeholders.

Integrity and transparency: Commitment to good governance standards in the various activities and operations of the CBJ to ensure equality, equal opportunities, dealing fairly and impartially with all the CBJ's stakeholders and employees, and adherence to professional standards and rules of disclosure of information and knowledge in line with the relevant policies and instructions.

Excellence: Continuous improvement and development in the performance of the CBJ's tasks and the quality of services it provides in a way that improves the institutional performance of the CBJ in accordance with the best international standards and practices.

Continuous learning and training: Continuously develop the employees’ professional and scientific capabilities and knowledge, in addition to supporting and motivating competencies.

Participation: Building and promoting a teamwork culture at the intellectual and practical level at all administrative levels to ensure the achievement of the CBJ's objectives efficiently and distinctively, and enhance work with all stakeholders to achieve common goals.

Innovation: Applying creative ideas based on knowledge and learning, keeping pace with international developments, adopting modern technologies, encouraging entrepreneurship, excellence and development, which contributes to improving the level of the CBJ's operations.