CBJ introduces Sharia-compliant monetary policy tools

AMMAN — The Central Bank of Jordan (CBJ), in cooperation with the Islamic banks operating in the Kingdom, on Tuesday introduced new monetary policy tools, adhering to the principles of Sharia. These Sharia-compliant tools are designed to bolster the effectiveness of liquidity management in the market. They also aim to assist Islamic banks in managing liquidity with greater flexibility and foster an efficient market among them, according to the Jordan News Agency, Petra. The CBJ, through these tools, will provide Islamic banks with day and overnight liquidity for up to one week. This provision can be made either upon request or at the discretion of the CBJ and is tailored to effectively accomplish the operational objectives of monetary policy, according to Petra. This initiative underscores the CBJ’s commitment to refining the operational framework of monetary policy and diversifying its tools. It aligns with the best practices of central banking and caters to the specific needs of the local banking market.