Central Bank of Jordan Circular on the Treatment of Interbank Repurchase Agreements for Liquidity and Regulatory Requirements

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

Reference No.: 4/ 16852
Date: 3 Rabi' al-Thani 1439 AH Corresponding to: December 21, 2017 AD

Circular to Licensed Banks

Greetings,

In light of inquiries received regarding the mechanism for processing interbank repurchase agreements in terms of the legal liquidity ratio or any other regulatory requirements, please be informed that for the purposes of legal liquidity ratio requirements, interbank repurchase agreements will be processed using the same mechanism as repurchase agreements concluded with the Central Bank. This is based on our Circular No. (6793/2/2/10) dated June 18, 2012, and subsequent Legal Liquidity Instructions No. (2007/37) dated November 11, 2007. The aforementioned circular and instructions indicated that repurchase agreements are to be processed in general, and do not restrict the processing mechanism solely to repurchase agreements concluded with the Central Bank. The same applies to other regulatory requirements, specifically those related to the requirements of the Financial Data and Disclosures Instructions; they will be treated within the same framework as repurchase agreements concluded with the Central Bank.

Please accept our highest regards,

[Signature]
Governor
Dr. Ziad Frieze

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P.O. Box 37 Amman 11118 Jordan • Tel: 4630301 • Fax: 4638889, 4639730, 4639731 • E-mail: info@cbj.gov.jo • Website: www.cbj.gov.jo Form (1/1/10)

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