Amendments to CBJ Regulations: New Dynamic Required Reserve Range

Instead of Fixed 5-35% Boundaries on RR

تم نشره في Tue 9 August / Aug 2016. 12:00 AM
  • Central Bank of Jordan (CBJ) Quarters, Amman - (Archives)

AMMAN —Al Ghad— Amendments to the Central Bank of Jordan regulations, 24/2016, substituted the 5 to 35 per cent floor-ceiling boundary on required reserves for banks with a dynamic interval range assigned to the Central Bank’s discretions, pending further review in this particular regard.

Reserves required with the Central Bank of Jordan (CBJ) should at least amount to JOD1.6 billion off roughly JOD33 billion deposited in registered banks.

Additionally, Article (5) of the regulations amend the Central Bank’s capital up to JOD48 million from JOD2 million, aftermath the capital increase was implemented, along with an increase in the number of members of the Board to 6, instead of 5.

Moreover, the amendments reassigned authorities on currency exchange rates to the discretions of the CBJ, as an independent entity, operating under amendments to articles that reinforce the Central Bank’s independence.