Central Bank Essay

1693 Words Mar 24th, 2015 7 Pages
Monetary System of Jordan Report

Student name: Nada Maher Siaj
Student ID: 201110288
Faculty of economics and administrative sciences
Department: Finance
Academic supervisor: Dr. Abdlsalam Alhamad

To begin with, Dr. Adel Sharkas claimed and addressed his case and point of view of the central bank of Jordan and its achievements and accomplishment. He also spoke about his personal life and how he became the person he is now. As an audience member, I was significantly inspired and ideas of what I can do to grow as a person flood into my thoughts.
Background
Moreover, Jordan set out preparations to establish the Central Bank of Jordan (CBJ) in the late 1950s. The Law of the
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The policies and tools of the central bank of Jordan are all used to preserve this exchange rate. The CBJ is responsible for determining the suitable investment opportunities as well as setting ratios and components of reserves to ensure their safety, liquidity, and profitability, as these reserves constitute a cornerstone in the stability of the Jordanian Dinar exchange rate. To fulfill this task, the CBJ adopts a flexible investment policy that is compatible with the ongoing developments in foreign exchange and international financial markets. The most important tool to achieve this is by the foreign reserves in the central bank kept to support the monetary currency.
Foreign reserves are deposits of a foreign currency held by a central bank; holding the currencies of other countries as assets allow governments to keep their currencies stable and reduce the effect of economic shocks..
He also stated the fact that the central bank of Jordan had as much as 14.4 billion, which is considered to be the highest number ever known to the Hashemite Kingdom and measures how strong of currency the Jordanian dinar is.

Growth of the economy
These 14 billion are put in use as the monetary and financial policy as the growth of the Jordanian economy. This growth is from the sources of remittances of tourism that is 3- 3.5 billion US dollars and the SWIFT

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