Press Release
The Central Bank of Jordan (CBJ) introduces new monetary policy instruments to increase the efficiency of Islamic Banks Liquidity Management
Within the framework of the CBJ’s keenness to develop the operational framework of the monetary policy and diversify its instruments in light of the best practices of central banks and the needs of the local monetary and banking market, the CBJ, in cooperation with operating Islamic banks, has developed new monetary policy instruments that are compatible with the provisions of tolerant Islamic Sharia. The developed instruments will contribute to increasing the effectiveness and efficiency of liquidity management in the monetary market, and help Islamic banks manage their liquidity with greater flexibility and create an effective interbank market.
These instruments will enable the CBJ to provide intraday liquidity to Islamic banks, as well as overnight to one-week liquidity provisions, either upon the banks' request or through the CBJ's initiative at the time, term, and volume that the CBJ deems appropriate and in a manner that achieves the operational targets of monetary policy.