Regulatory Alerts2024-07-16
Added · Updated
Caps Imposed on Intraday Liquidity Provision Operations
The Central Bank of Jordan abolishes the previously applicable caps on overnight repurchase agreements used for intraday liquidity provision to the RTGS-JO system. Effective 14 July 2024, the actual cap for each licensed bank is set to the volume of its accepted collateral holdings for this purpose. This decision applies to all licensed banks in Jordan.
[Logo of the Central Bank of Jordan]
Reference No.: 11294 / 3 / 12 Date: 08 Muharram 1446 AH Corresponding to: 14 July 2024 AD
Memorandum to Licensed Banks No. (5 / 2024)
Subject: Caps Imposed on Intraday Liquidity Provision Operations
Based on the instructions issued by the Central Bank regarding the provision of intraday liquidity to facilitate and expedite the settlement of transfer orders on the Real-Time Gross Settlement - Jordan (RTGS-JO) system through overnight repurchase agreements, and with the Central Bank's commitment to enabling banks to manage their liquidity efficiently and effectively, and in line with global best practices, it has been decided to abolish the currently applicable caps on overnight repurchase agreements (Intraday Liquidity ILF). Consequently, the actual cap for each bank shall be the volume of its accepted collateral holdings for this purpose.
This decision takes effect from its date.
Governor Dr. Adel Al-Sharkas