The Central Bank of Jordan is the only party responsible for implementing and managing the monetary policy defined as the set of procedures and measures implemented by the central bank to influence the money supply and interest rates level for the purpose of achieving a group of ultimate objectives of this policy.
In accordance with Article Four of the Central Bank of Jordan Law of 1971 and its subsequent amendments, the Central Bank aims at maintaining monetary stability in the kingdom, ensuring the convertibility of the Jordanian Dinar as well as contributing to achieving banking and financial stability in the kingdom. Furthermore, the Central Bank aims at contributing to the promotion of the ongoing economic development according to the general economic policies of the kingdom. The monetary stability is manifested in preserving the stability of general prices levels and the stability of the Jordanian Dinar exchange rate, in addition to providing an interest rate structure that is compatible with the domestic and global economic developments.
The banking and financial stability, on the other hand, means solidifying the financial intermediation of the banking system in accruing savings and investments, and strengthening its soundness and invulnerability, while solidifying the ability of other banking and financial institutions to tackle risks and limit any structural upsets.
The monetary and financial stability is a pillar for creating a safe and stable economic environment for investments due to its role in creating a clear vision and solidifying trust while reducing risks, as well as accumulating domestic savings and directing them towards feasible investments.