Circular Regarding Islamic Banks' Operations No. (1686/1/10) dated 2014/2/5

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

Number: 1686/1/10
Date: 4/4/1435 AH
Corresponding to: 2014/5/20 AD

Circular to Licensed Islamic Banks

Greetings,

Based on the provisions of Article (4/b) of the Central Bank Law No. (23) of 1971 and its amendments, and within the framework of the Central Bank's review of the monetary policy operational framework, I hereby decide the following:

First: Cease conducting international swaps in Jordanian Dinars, and consider any previous approvals issued in this regard null and void.

Second: Cease conducting international investment agencies in Jordanian Dinars.

Third: Cease conducting Jordanian Dinar currency swap contracts with foreign currencies with other banks, except for contracts between Islamic banks operating in the Kingdom.

Fourth: Do not use current accounts held at other local and foreign banks and financial institutions except for ordinary activities.

The above shall be implemented as of its date, and banks are granted a grace period until the maturity date of any currently existing contracts regarding international swaps in Jordanian Dinars and currency swap contracts.

Please accept our highest regards,

The Governor
Dr. Ziad Friez

(1/1/2014) Form

P.O. Box 37, Amman 11118 - Jordan • Phone 201-462 • Fax 4638889, 463972, 4639761 • E-mail: info@cbj.gov.jo • Website: www.cbj.gov.jo