Date: 28 February, 2024
Jordan’s Central Bank
In a groundbreaking move, Jordan’s Central Bank is set to transform liquidity management in the country’s cash market by introducing innovative tools aligned with Shariah laws. Developed in collaboration with Islamic banks operating in Jordan, these measures aim to boost liquidity management efficiency and establish a robust interbank market, according to reports from the Jordan News Agency.
The new tools provide Islamic banks greater flexibility in liquidity management, facilitating daytime liquidity, overnight liquidity, and liquidity extending up to one week. The Central Bank of Jordan will respond to banks’ requests or take the initiative, allowing adaptable timing, amount, and duration based on operational objectives for implementing monetary policy. This strategic initiative reflects the central bank’s commitment to refining the operational framework of monetary policy and diversifying available tools. Aligned with global central banking best practices, these measures address specific needs within Jordan’s cash and banking market, as highlighted by PETRA.
In a related development, Jordan witnessed the joint launch of the first private sector investment fund by 16 local banks in January. With a commitment of $388 million, the Jordan Capital and Investment Fund, established in 2021 with a capital of 275 million dinars ($387.6 million), is officially registered under the 2022 Investment Environment Law, according to state news agency reports.
This pioneering investment instrument aims to inject capital into emerging firms with growth potential, fostering job opportunities and contributing to nationwide economic growth. Focused on pivotal sectors like food and health security, manufacturing, and information and communication technology, the fund stands as Jordan’s largest private sector investment initiative, aiming to harness the nation’s potential for building a prosperous future. Stay tuned for more updates on these transformative financial developments in Jordan.
References:
https://www.arabnews.com/node/2468036/business-economy
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