The operational framework of the monetary policy depends on the windows system known as Corridor System, through directing overnight interbank rates. This system consists of an overnight deposit interest rate and an overnight repurchase agreement interest rate. Banks deposit their surpluses with the Central Bank at the deposit interest rate, and in case they need liquidity, they borrow form the Central Bank through conducting overnight repurchase agreements to cover their financing needs of liquidity. The overnight deposit interest rate represents the floor of the system while the repurchase agreement interest rate represents the ceiling of the system.
The system of the fixed exchange rate with the US Dollar is the nominal pillar of the monetary policy. This system has contributed since it was adopted in 1995 to effectively serving the Jordanian economy and has led to increasing the trust in the Jordanian Dinar as an enticing vessel for savings. Moreover, it has positively contributed to increasing investment cash inflows to the kingdom and raising the competitiveness of domestic exports while working to contain inflation.