Regulatory Alerts2017-06-09
Added · Updated
Temporary Open Market Operations: Repurchase Agreements and Currency Swaps
The Central Bank of Jordan mandates licensed banks to conduct temporary open market operations via repurchase agreements and currency swaps to inject liquidity. Repurchase agreements are offered for terms ranging from one day to one year, utilizing government securities under a fixed quantitative interest rate auction. For US Dollar swaps, the minimum transaction limit is set at ten million Dollars, with outstanding balances capped at double the bank's capital and reserves, or triple with prior approval. The directive establishes specific deadlines for trade execution, daily rate bulletins, and interest penalties for settlement delays, superseding previous swap instructions.
Topics
monetary
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