In this article, We learn about “Jordanian Dinar (JOD)”.Let’s Go!
Jordanian Dinar (JOD) is the official currency of Jordan, a country located in the Middle East.
The dinar was introduced in 1950, replacing the Palestinian pound used during the British Mandate. 1 Jordanian dinar can be divided into 10 dirhams, 100 qirsh (also called piastres) or 1,000 fils.
The Central Bank of Jordan is responsible for issuing and managing the Jordanian dinar.
Exchange rate system
The Jordanian dinar is pegged to the International Monetary Fund’s Special Drawing Rights (SDR), a basket of major currencies including the U.S. dollar, euro, pound sterling, and others.
This peg provides stability to the Jordanian Dinar and helps maintain confidence in the currency.
The Central Bank of Jordan is responsible for managing the exchange rate and may intervene in the foreign exchange market when necessary to maintain the peg and prevent excessive volatility.
Segments and denominations
As mentioned previously, the Jordanian dinar is subdivided into 10 dirhams, 100 qirsh or 1,000 fils.
Coins are available in denominations of ½, 1, 2½, 5 and 10 gilshes, and ¼ and ½ dinars.
Banknotes are available in 1, 5, 10, 20 and 50 dinar denominations.
Economy and Challenges
Jordan’s economy is based on multiple sectors, including services, tourism, agriculture, mining, and manufacturing.
The country is known for its phosphate and potash reserves, which are vital to its mining industry.
However, Jordan faces many economic challenges such as limited natural resources, high unemployment, and a large refugee population.
The government has been formulating policies to promote economic growth, attract foreign investment, and solve social problems such as poverty and unemployment.
Summary
To summarize, the Jordanian dinar is the official currency of Jordan and is managed by the Central Bank of Jordan.
The currency is pegged to the International Monetary Fund’s Special Drawing Rights, providing stability and confidence in the currency.
The Jordanian dinar is subdivided into dirhams, kirks and fers, and is issued in various banknote and coin denominations.
Jordan’s economy is based on a variety of sectors, but the country faces the challenges of limited natural resources, high unemployment and a large refugee population.
If you want to learn more foreign exchange trading knowledge, please click: Trading Education.
