The 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, which was used during the British Mandate period. One Jordanian Dinar is 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 (SDRs), which is a basket of major currencies including the US Dollar, Euro, British Pound, and others.
This peg provides stability to the Jordanian Dinar and helps maintain confidence in the currency.
The Central Bank of Jordan manages the exchange rate and may intervene in the foreign exchange market if necessary to maintain the peg and prevent excessive fluctuations.
Subdivisions and Denominations
As mentioned earlier, the Jordanian Dinar is subdivided into 10 dirhams, 100 qirsh, or 1,000 fils.
Coins are issued in denominations of ½, 1, 2½, 5, and 10 qirsh, and ¼ and ½ dinar.
Banknotes are available in denominations of 1, 5, 10, 20, and 50 dinars.
Economy and Challenges
Jordan’s economy is based on various 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 several economic challenges, such as limited natural resources, high unemployment, and a large refugee population.
The government has been working on policies to promote economic growth, attract foreign investment, and address social issues such as poverty and unemployment.
Summary
In summary, the Jordanian Dinar is the official currency of Jordan and is managed by the Central Bank of Jordan.
The currency is pegged to the IMF’s Special Drawing Rights, providing stability and confidence in the currency.
The Jordanian Dinar is subdivided into dirhams, qirsh, and fils and is issued in various banknote and coin denominations.
Jordan’s economy is based on various sectors, but the country faces challenges related to limited natural resources, high unemployment, and a large refugee population.