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	Jordan		Info-Prod Country Guide
JUDICIARY   BUSINESS FORMS & STRUCTURES   CURRENCY & BANKING   INTELLECTUAL PROPERTY TAXATION   INVESTMENT & TRADE   LABOR LAW   ENVIRONMENTAL LAW

Currency and Banking Foreign Currency Control In accordance with the Foreign Exchange Control Law, No. 95, of 1966 and the Foreign Exchange Control Regulations of 1978, as amended in 1979, the Central Bank of Jordan (CBJ) is the ultimate authority for enforcing foreign exchange controls in Jordan. Its foreign exchange controls cover all fields of transactions in the Kingdom including: inflow and outflow of Jordanian and foreign means of payment; dealing in foreign currencies; resident and non-resident accounts in Jordanian Dinars and foreign currencies; lending in foreign currencies; commercial payments; free trade zone payments; invisible payments and capital transfers; guarantees; export earnings repatriation; commissions on foreign exchange permits; reporting requirements; and auditing and statement of account regulations. Law No. 95 allows for the free exchange of banknotes, coins and gold. It allows licensed banks, with the approval of the CBJ, to manage foreign currency accounts, as well as to purchase and to sell foreign currencies. According to Article 6 of the Law, foreign residents may open accounts in local and foreign currency and may transfer funds without restrictions. Conversion and Transfer Policies In March, 1995, the CBJ announced that the Jordanian Dinar is fully convertible for commercial transaction purposes. There are no restrictions on transferring funds associated with investments. The CBJ Regulations permit non-residents and foreign investors who transferred funds into Jordan to remit their funds abroad in the same or in any other transferable currency. To transfer funds outside of Jordan, a local bank must obtain a permit from the CBJ. Furthermore, before an investment is made, the CBJ must be informed when an investor transfers funds into Jordan, opens a non-resident account at a local bank or seeks to transfer foreign currency funds outside Jordan. CBJ's approval for these transactions is generally granted liberally. Prior to investing in Jordan, non-residents may obtain explicit regulations governing their specific needs from the CBJ. There are no limitations on the inflow or outflow of funds for remittance of profits, capital gains and royalties regarding intellectual property, as long as a prior authorization from the CBJ has been obtained. Banking The CBJ is the monetary authority of the country. Other financial institutions include approximately fifteen foreign and Jordanian commercial banks and specialized credit institutions, such as the Industrial Development Bank. The specialized credit institutions offer equity capital. Banks, both foreign and Jordanian, may be established in a free zone; must deal exclusively in foreign currency and must operate independently of other banking activities in the country. Previous Chapter Contents Menu Next Chapter

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