Regulatory Alerts2018-03-22
Added · Updated
Central Bank of Jordan Circular Regarding JODIBOR
The Central Bank of Jordan establishes the Jordan Interbank Offered Rate (JODIBOR) as the official benchmark interest rate for the Kingdom of Jordan, effective 1 July 2018. Financial institutions are required to adhere to the circular's guidelines, which detail the calculation methodology and application of a Top-Up mechanism to maintain benchmark integrity. This rate serves as the primary reference for pricing financial instruments and transactions within the Jordanian financial market.
CENTRAL BANK OF JORDAN
Circular No. 2018/7/1 Date: 1 July 2018
Subject: Jordan Interbank Offered Rate (JODIBOR)
The Central Bank of Jordan hereby issues this circular to announce the establishment of the Jordan Interbank Offered Rate (JODIBOR) as the official benchmark interest rate for the Kingdom of Jordan. This rate will serve as the primary reference for pricing various financial instruments and transactions within the Jordanian financial market.
The circular further details the methodology for calculating JODIBOR and specifies its application in financial contracts. Additionally, it introduces a Top-Up mechanism to be applied in specific circumstances to maintain the integrity and stability of the benchmark rate. Financial institutions are required to adhere to the guidelines set forth in this circular effective from the date of issuance.