Central Bank of Jordan Memorandum No. 111/97 Regarding Foreign Exchange Instructions No. 97/111 dated 30 June 1997

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

Form (1/7/17)

Central Bank of Jordan
CENTRAL BANK OF JORDAN

Number: 14301/2/178
Date: 25/6/1418 AH
Corresponding Date: 30/6/1997 AD

Memorandum to Licensed Banks
No. (111/97)

Attached please find a copy of the new Foreign Exchange Instructions approved by the Board of Directors of the Central Bank of Jordan on 29/6/1997, based on the provisions of the Temporary Foreign Exchange Control Law No. (95) of 1966. We request that you circulate these instructions to all your branches operating within the Kingdom for implementation as of the date of their publication in the Official Gazette.

Accept, please, the highest regards,

The General Manager

Attachments: (6)

Amman 11118 - Jordan • Phone: 201/9-62 • Telegram: Central Bank/Amman • Telex: 21250, 21476, 21766 • Fax: 638889, 639730, 8

---

Foreign Exchange Instructions issued based on the provisions of the Foreign Exchange Control Law No. (95) of 1966.

2/...

---

Chapter One
Jordanian and Foreign Payment Instruments, Gold, and Their Inflow and Outflow

Article (1): The import and export of banknotes, coins, Jordanian and foreign payment instruments, and gold into and out of the Kingdom are permitted without any restrictions.

Article (2): Visible and invisible payments, as well as capital payments, are permitted without any restrictions.

3/...

---

Chapter Two
Transactions of Licensed Banks with Foreign Currencies

Article (3): A licensed bank may hold foreign currencies not exceeding 15% of its total external liabilities, in exchange for import operations to the Kingdom in foreign currency or the equivalent of one million Jordanian Dinars, whichever is greater. The licensed bank must sell any amount exceeding this limit to other licensed banks in the Kingdom or to the Central Bank within one week from the date of the excess.

Article (4): Licensed banks are permitted to manage their clients' investment portfolio accounts and common investment funds in foreign currencies, and to trade in foreign currencies on a margin basis, swap assets, and use any other instruments in accordance with instructions and memoranda issued by the Central Bank on this matter.

Article (5): (a) Licensed banks may purchase foreign currencies from their clients against Jordanian Dinars in bulk and without any ceilings.
(b) Licensed banks may sell foreign currencies to their clients against Jordanian Dinars in bulk to cover losses from imports to the Kingdom.

4/...

---

Chapter Three
Accounts of Residents and Non-Residents

Article (6):
a. Licensed banks may open accounts for non-residents in Jordanian Dinars and/or foreign currencies, provided that the account holder's status as a non-resident is supported by evidence. b. If the account is for a Jordanian who has acquired the status of a non-resident, they must provide evidence supporting their residence abroad every three years; otherwise, the non-resident account will be converted to a resident account in foreign currency.
c. Withdrawals and transfers from a non-resident account are permitted without any restrictions.

Article (7):
a. Any person is permitted to hold restricted foreign currency accounts with licensed banks without any ceilings. b. Withdrawals and transfers from a resident's foreign currency account are permitted without any restrictions.

5/...

---

Chapter Four
Data and Reports

Article (8): The main departments of licensed banks shall prepare reports and data regarding foreign currency transaction accounts for all their branches on the forms approved by the Central Bank.

Article (9): Licensed banks shall provide the Central Bank with the following monthly statements:
a. Total operations for the export of Jordanian banknotes, coins, and foreign payment instruments. b. Total loans granted and investments abroad in foreign currency.
c. Total payments made from resident accounts in foreign currency.
d. Total value of imported goods to the Kingdom paid for in Jordanian Dinars. e. Total value of opened letters of credit and amounts actually transferred for importing goods to Free Zones or passing through transit. f. Total transfers to cover invisible payments made against Jordanian Dinars. g. Statement of accounts opened with correspondents abroad.

6/...

---

Chapter Five
General Provisions

Article (10) -
The Central Bank may publish buying and selling prices for foreign currencies.

Article (11) -
Free Zones in the Kingdom are considered as any foreign country for the purposes of these Instructions.

Article (12) -
The Central Bank shall collect a commission of (0.1 per thousand) on foreign currency transfers using transfers from government entities, public institutions, and diplomatic and charitable bodies.

Article (13) -
Any matter not addressed by these Foreign Exchange Instructions shall be referred to the Central Bank.

Article (14) -
All previous instructions and memoranda issued by the Central Bank based on the provisions of the Temporary Foreign Exchange Control Law No. (95) of 1966, which conflict with the provisions of these Instructions, are repealed. These Instructions shall be implemented as of the date of their publication in the Official Gazette.