Central Bank of Jordan (CBJ)

Overview

The Central Bank of Jordan (CBJ) is the central monetary authority of the Hashemite Kingdom of Jordan. The CBJ holds the mandate to implement monetary and foreign exchange policy, supervise the banking and payment systems, and maintain financial system stability and integrity.

Establishment:

Law enacted: 1959
Operations commenced: October 1, 1964
Constitutional status: Independent public institution with legal personality

Current Governor: Adel Sharkas (appointed April 1, 2026)

Core Functions:

Release and distribution of Jordanian currency (Jordanian Dinar - JOD)
Maintenance of national reserve of gold and foreign currencies
Monetary policy implementation
Banking system supervision
Payment system operations and oversight
Financial stability management
Insurance sector supervision
AML/CFT coordination

Basic Identity

Field	Value
Official Name (English)	Central Bank of Jordan (CBJ)
Official Name (Local Language)	Central Bank of Jordan (CBJ)
Acronym	CBJ
Country	Jordan
Jurisdiction Level	National
Official Website	https://www.cbj.gov.jo/
Official Website Language(s)	Arabic (primary), English (partial)
Headquarters	Jordan
Year Established	Not publicly documented
Current Status	Active

Classification

Field	Value
Entity Type	Central Bank
Control Layer	Layer 1 — Sovereign/Government Regulator
Legal Authority Level	Binding
Jurisdiction Level	National
Scope of Power	Licensing, Supervision, Enforcement, Rulemaking

Inclusion Justification

Field	Value
Why This Entity Is Included	Primary monetary authority with statutory powers over banking supervision, monetary policy, payment systems, and financial stability
Type of Influence	Direct
Exclusion Risk	Removes the foundational monetary and banking regulatory authority from the directory, making the jurisdiction's financial control structure incomprehensible

What This Entity Oversees

National Central Bank Authority

Regulatory Framework:

Banking System Oversight:

CBJ authority to license and regulate banks
Capital adequacy and operational standards
Prudential supervision of banking sector
Systemic risk monitoring
Consolidated supervision of banking groups

Supervised Entities:

Commercial banks
Development banks
Islamic banks (Sharia-compliant)
Microfinance institutions
Banking sector participants

Capital Adequacy:

Basel III compliance framework
Minimum capital requirements
Capital conservation buffers
Risk-weighted asset calculations

Operational Standards:

Asset quality requirements
Liquidity management standards
Operational risk management
Business continuity planning
Governance standards

Stress Testing:

Regular scenario analysis
System-wide stress testing
Individual bank resilience assessments
Forward-looking risk assessment

Regulatory Authority:

The CBJ maintains supervisory authority over the insurance sector as part of overall financial system stability mandate.

Supervised Insurance Entities:

Life insurance companies
General insurance companies
Insurance brokers and agents
Reinsurance companies

Supervisory Standards:

Capital adequacy requirements
Solvency margins
Reserve adequacy
Operational governance
Policyholder protection

Regulatory Framework:

Primary Authority:

AMLU (Anti-Money Laundering Unit) - Central coordination authority
CBJ: Payment system and banking sector oversight
Coordinated enforcement approach

CBJ AML/CFT Responsibilities:

Banking Sector Oversight:

Bank AML/CFT compliance supervision
Transaction monitoring system requirements
Know Your Customer (KYC) standards enforcement
Suspicious transaction reporting procedures

Payment System AML/CFT:

RTGS-JO AML controls
JoMoPay AML/CFT standards
eFAWATEERcom compliance oversight
Participant institution monitoring

Cryptocurrency Regulation:

Crypto asset service provider oversight (where applicable)
Exchange and trading platform regulation
AML/CFT requirements for crypto transactions
Due diligence for high-risk crypto activities

Compliance Requirements:

Know Your Customer (KYC):

Customer identification procedures
Beneficial ownership verification
Source of funds verification
Risk assessment procedures
Document retention (minimum 10 years)

Suspicious Transaction Reporting (STR):

Mandatory reporting to AMLU
Timely filing requirements
Report completeness and accuracy
No tipping off provisions

Customer Due Diligence (CDD):

Risk-based approach
Ongoing customer monitoring
Enhanced due diligence for high-risk categories
Periodic information updates

Institutional Cooperation:

Joint task forces with AMLU
Information sharing protocols
Coordinated examinations
Unified enforcement approach

JoMoPay Mobile Wallet Initiative:

Objective:

Financial inclusion through mobile payments
Unbanked and underbanked population reach
Digital financial services expansion

Features:

Mobile wallet for small-value transactions
Person-to-person money transfers
Bill payment capability
Merchant payment functionality
Integration with banking system

Impact:

Increased financial services access
Reduced reliance on cash
Economic activity facilitation
SME payment solutions

Regulatory Support:

CBJ regulatory framework for mobile payments
Consumer protection standards
AML/CFT requirements for mobile wallets
Technology oversight and approval

International Participation

Multilateral Memberships:

BIS (Bank for International Settlements)

Member institution
Participation in regular central bank meetings
Access to BIS services and analysis

IMF (International Monetary Fund)

Article VIII acceptance (current account convertibility)
Regular IMF staff visits and consultations
Financial arrangement participation (as needed)
Technical assistance programs

World Bank

Member institution
Development financing coordination
Technical cooperation

Regional Organizations:

Central Bank Governors Forums:

GCC Central Bank Governors Council coordination
Middle East and North Africa (MENA) regional forums
Arab monetary cooperation initiatives
Regional payment system integration

Bilateral Cooperation:

Central bank relationship with peer institutions
Supervisory cooperation agreements
Information sharing protocols
Joint examination arrangements

Standard-Setting Participation:

Basel III capital standards compliance
FATF AML/CFT recommendations alignment
International Payment System standards (ISO 20022)
Financial Stability Board (FSB) participation (through IMF coordination)

Regulatory Powers

Regulatory Authority:

The CBJ possesses comprehensive enforcement powers to ensure banking system compliance and financial system stability.

Enforcement Tools:

Administrative warnings
Regulatory fines and penalties
Operating restrictions
Capital requirement increases
Dividend distribution restrictions
Business activity limitations
License suspension or revocation

Supervisory Actions:

Examination authority (on-site and off-site)
Document review and access
Interview and testimony authority
Account and transaction examination
Third-party information requests

Investigation Procedures:

Compliance examination programs
Risk-based audit scheduling
Thematic examinations
Cross-border investigation coordination

Administrative Procedure:

Due process protections
Right of response
Appeal mechanisms
Public disclosure policies

Regulatory Role and Function

Role	Description
Primary Role	Monetary policy formulation and implementation; banking system supervision
Licensing Role	Licenses and authorizes banking institutions and payment service providers
Supervisory Role	Prudential supervision of banks and financial institutions
Enforcement Role	Enforcement of banking laws, regulations, and prudential standards
Payment Systems Oversight Role	Operation and oversight of national payment and settlement systems
AML / CFT Role	AML/CFT supervisory authority for banking sector

Legal Foundation

Primary Legislation:

Central Bank of Jordan Law (1959)

Establishment charter
Board structure and governance
Policy-setting authority
Regulatory and supervisory powers
Independence provisions

Banking Law

Framework for banking operations supervision
Capital adequacy requirements
Operational standards

Payment Systems Legislation

Payment system establishment and regulation
Settlement procedures
Risk management standards
System oversight frameworks

AML/CFT Legislation

Anti-Money Laundering requirements
Counter-Terrorist Financing standards
Suspicious transaction reporting
Customer due diligence (CDD) procedures

Constitutional Status:

Central Bank operates under constitutional authority
Independent authority to conduct monetary policy
Cabinet coordination on monetary policy (not direct control)
Parliamentary accountability through annual reporting

Licensing and Authorization Relevance

The Central Bank of Jordan (CBJ) is a key licensing authority in Jordan's financial system:

License Type	Description
Banking License	Authorization to conduct deposit-taking and lending activities
Payment Service Provider License	Authorization to provide payment services and operate payment systems
Foreign Exchange Dealer License	Authorization to conduct foreign exchange dealing and brokerage
Bureaux de Change License	Authorization to operate money changing services
Money Transfer License	Authorization to provide money transfer and remittance services
Electronic Money Issuer License	Authorization to issue electronic money instruments

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

Exchange Rate Regime:

Fixed Peg to USD:

Official rate: 0.709 JOD per USD
Established: 1995 (25+ years of stability)
CBJ buying rate: 0.708 JOD per USD
CBJ selling rate: 0.710 JOD per USD

Policy Rationale:

Provides macroeconomic stability
Policy predictability for investors and businesses
Reduces exchange rate volatility
Anchors inflation expectations

Reserve Coverage:

Foreign reserves as of early 2026: ~$28 billion
Coverage period: Approximately 10 months of imports
Exceeds internationally recommended standard (3 months) by 3x+

Policy Tools:

Reserve requirement adjustments
Discount rate (rediscount facility)
Open market operations (limited)
Direct lending to banking system

Inflation and Price Stability:

Inflation in January-February 2026: 1.10%
Moderate inflation targeting
Price stability priority
Real interest rate management

Medium-Term Economic Growth:

Governor projects over 4% medium-term growth
Monetary policy supports economic expansion
Balances growth with price stability
Regional economic considerations

The CBJ operates and oversees multiple payment system platforms to facilitate efficient financial transactions and support economic activity.

RTGS-JO (Real Time Gross Settlement System - Jordan)

Establishment: 2002 (modernized in 2015)

Operational Status:

Key pillar of Jordan's payment infrastructure
Centralized electronic settlement system
Operated by Central Bank of Jordan
Real-time, gross, and final settlement basis

Technical Standards:

ISO 20022 standard adoption (2015)
First in Middle East/North Africa region
Second globally for recognized international standards
High-speed, reliable settlement

Settlement Process:

Bilateral credit transfers
Real-time settlement capability
Interoperability with retail payment systems
Final settlement in CBJ accounts

Participants:

All CBRT-authorized credit institutions
Clearing houses and settlement entities
Interbank transfer facilitation

JoMoPay (Mobile Payment Service)

Launch Date: April 1, 2014

Operational Framework:

Mobile payment system (electronic system)
Registered users: Banks, companies, beneficiaries
Financial transaction exchange platform
CBJ operates and provides oversight

Service Features:

New and safe means for immediate electronic payment
Mobile transfer capability
Payment order functionality
Small-value transaction focus

Use Cases:

Person-to-person (P2P) transfers
Bill payments
Purchases and merchant payments
Utility and service payments
Fund distribution

Technical Capability:

24/7 availability (where supported by participants)
Instant or near-instant settlement
Integration with bank mobile applications
Multiple payment channels

eFAWATEERcom (Electronic Bill Presentment and Payment)

Establishment: 2014

Purpose:

Facilitate and accelerate bill payment processes
Connect institutions with payment services providers
Multiple payment channel integration

Connected Entities:

Public sector institutions
Government services
Utility companies (water, electricity, gas)
Telecommunication companies
Transportation companies
Educational institutions
Banking network

Payment Channels:

Bank branch counter payments
ATM payments
Mobile banking platforms
Internet banking
Mobile payment (JoMoPay) integration
Jordan post offices
Kiosks and payment points

Transaction Volume (2023):

Transactions processed: ~52.6 million
Total transaction value: ~11.6 billion JOD
Growing adoption and usage

System Integration:

Interoperability with RTGS-JO
Links to retail payment systems
Settlement coordination with ACH and ECCU
Mobile wallet integration

Additional Payment Systems

Electronic Cheque Clearing Unit (ECCU):

Cheque clearing and settlement
RTGS-JO interoperability
Reduced clearing cycles

Automated Clearing House (ACH):

Bulk payment processing
Payroll and repetitive payments
Retail payment settlement
RTGS-JO integration

Reserve Management:

Foreign Reserve Holdings:

Total reserves: ~$28 billion (as of 2026)
Composed of:
Foreign government securities
Gold reserves
Special Drawing Rights (SDRs)
Cash and liquid assets

Reserve Adequacy:

Coverage: 10+ months of imports
International benchmark: 3-6 months recommended
Jordan exceeds standard by significant margin
High financial stability indicator

Reserve Currency Composition:

US Dollar (primary)
Euro
British Pound
Other major currencies
Gold

Exchange Rate Management:

Peg maintenance operations
Intervention in FX markets (when necessary)
Stability assurance to market participants
Predictable FX environment

Bilateral Swap Arrangements:

Regional central bank coordination
Emergency liquidity facilities
Currency swap agreements
Bilateral credit lines

Payment Systems Governed or Overseen

The CBJ operates and/or oversees the national payment and settlement infrastructure of Jordan through the Jordan Payments and Clearing Company (JoPACC), a domestically-owned payment systems operator.

JoPACC (Jordan Payments and Clearing Company)

Ownership: Joint ownership by CBJ and all commercial banks in Jordan

Established: 2017

Role: Domestic payment system operator managing micro and retail digital payment systems in Jordan

Regulatory Status: Operating under CBJ supervision and oversight

Core Functions:

Owner and operator of domestic digital payment systems
Settlement infrastructure provider
Retail and micro payments processing
Payment system modernization and innovation

CliQ - Instant Payments System

Type: Real-Time Payments (Instant Payments) Platform

Launch: Recently deployed and expanding

Function: Immediate, 24/7 fund transfers between bank accounts and mobile wallets using simple payment identifiers.

Key Features:

Settlement: Immediate money movement
Availability: 24/7 without interruption
Identification: Simple aliases (mobile number) bypass need for traditional IBANs
Integration: 19 participating banks integrated into mobile banking apps
Transaction Volume: Over 5 million transactions per month

Market Penetration: Actively expanding across Jordan's banking sector with strong adoption trajectory

Source: JOPACC | We Connect and Innovate Digital Payments, JoPACC: Jordan Marks a Decade of Digital Financial Services Developments

JoPACC System Portfolio

Other Systems Operated by JoPACC:

JoMoPay: Mobile wallet platform
eFAWATEERcom: Online bill payment system for paying utilities and government services
Electronic Cheque Clearing System (ECC): Cheque processing and clearing
Automated Clearing House (ACH): Debit and credit bank transfers and batch payments

JoPACC Strategic Development (2023-2026)

JoPACC announced its quadrennial strategy for 2023-2026 with major initiatives:

Instant Payments Expansion:

CliQ instant payment system launch and deployment
Integration across multiple banks and participants
24/7 service capability

Mobile Payment Upgrades:

JoMoPay system enhancement and modernization
Alias support in money transfers (using mobile numbers, email)
QR code payment enablement for merchant transactions

Digital Financial ID:

Launch of digital financial ID system
Enable remote and digital onboarding to financial services
Reduce documentation burden for account opening

Payment Systems Summary Table

System Name	Type	Coverage	Status
CliQ	Instant Payments	Retail, 24/7	Active/Expanding
JoMoPay	Mobile Wallets	Mobile channels	Upgraded
eFAWATEERcom	Bill Payment	Utilities, Government	Active
ECC	Cheque Clearing	Paper processing	Operational
ACH	Interbank Transfers	Batch settlement	Operational

Source: JoPACC Strategic Development

Relationship to Other Regulators

The Central Bank of Jordan (CBJ) operates within Jordan's broader financial regulatory architecture and maintains relationships with:

Counterpart Type	Relationship
Ministry of Finance / Treasury	Fiscal-monetary policy coordination; government banker functions
Financial Intelligence Unit (FIU)	AML/CFT information sharing and suspicious transaction reporting
Securities Regulator	Coordination on financial stability and systemic risk; shared oversight of financial conglomerates
Insurance Regulator	Coordination on prudential standards for insurance sector where applicable
Deposit Insurance Corporation	Coordination on bank resolution and depositor protection
International Organizations	Cooperation with IMF, World Bank, BIS, and regional central bank networks

Geography and Jurisdiction Notes

Field	Value
Applies Nationwide	Yes
Applies at State or Sub-National Level Only	No
Cross-Border or Regional Reach	No
Special Territorial Notes	National jurisdiction within Jordan

Important Departments and Divisions

Division / Department	Primary Function
Banking Supervision Department	Prudential supervision of banks and deposit-taking institutions
Monetary Policy Department	Formulation and implementation of monetary policy
Payment Systems Department	Operation and oversight of payment infrastructure
Financial Stability Department	Systemic risk monitoring and macroprudential policy
Foreign Exchange Department	FX reserves management and exchange rate policy
AML/CFT Compliance Unit	Anti-money laundering supervision and enforcement
Research and Statistics Department	Economic research and data collection

Key Public Resources

Executive Leadership:

Governor: Adel Sharkas (appointed April 1, 2026)
Vice Governor: Senior management team
Board Members: CBJ Board of Directors

Organizational Structure:

Monetary Policy Department
Banking Supervision Department
Payment Systems Department
Financial Stability Department
AML/CFT Compliance Department
Foreign Exchange Management Department
Insurance Supervision Department
International Relations

Contact Information:

Headquarters:

Central Bank of Jordan

Amman, Jordan

Official Address:

P.O. Box 37