CBJ Introduces Sharia-Compliant Monetary Tools

The Central Bank of Jordan (CBJ), in a collaborative effort with Islamic banks in Jordan, has unveiled new monetary policy instruments that adhere to Islamic Sharia principles. This initiative aims to enhance liquidity management efficiency in the money market, providing Islamic financial institutions with improved flexibility and fostering a more effective interbank market. These instruments will enable the Central Bank to offer daytime liquidity facilities to Islamic banks, alongside options for overnight to one-week liquidity provisions, either upon the banks' request or through the Central Bank's initiative. The operations will be conducted in a manner that the Central Bank believes will best support the objectives of its monetary policy, considering the appropriate timing, terms, and volumes. This step is part of the Central Bank's broader strategy to evolve its monetary policy framework and diversify the tools it employs, guided by global best practices and the specific requirements of Jordan's mone tary and banking landscape. Source: Jordan News Agency