Jordanian Dinar (JOD)
What Is the Jordanian Dinar (JOD)?
The Jordanian dinar is the national currency of Jordan and its shortened form, or currency symbol, is meant by JOD. The dinar has more modest divisions or subunits. Specifically, one dinar is equivalent to 10 dirhams, 100 qirshes, and 1,000 fils. The dinar is likewise flowed on Israel's West Bank.
Figuring out the Jordanian Dinar (JOD)
The dinar turned into Jordan's official currency in July 1950. It supplanted the Palestinian pound, a currency that had flowed in the British Mandate of Palestine and the Emirate of Transjordan, a British protectorate, starting around 1927. After independence, the country made the Jordan Currency Board to issue and course currency.
The Jordanian dinar is viewed as the fourth-most noteworthy valued currency in the world.
The Central Bank of Jordan (CBJ) took over production and monetary policy in 1959. Issued dinars have the official name of the country, the Hashemite Kingdom of Jordan, imprinted on them. The current, fourth series of banknotes issued by the CBJ have divisions of 1, 5, 10, 20, and 50 dinars. Dinarian coins were named in Arabic until 1992 and afterward changed to English. The dinar has been pegged to the U.S. dollar beginning around 1995.
Special Considerations
The country of Jordan pegged its neighborhood currency to the U.S. dollar to make stability in its financial system. Ordinarily, in the event that a country's currency exchange rate varies fiercely, it's hard to draw in foreign investment, and capital flows could leave the country looking for additional stable investments.
By pegging the dinar to the dollar, Jordan gets the benefit of a stable currency system, significance its neighborhood banks are probably going to draw in deposits. A stable currency likewise prompts increases in foreign direct investment (FDI) into Jordan.
$45 Billion
The GDP of Jordan in 2021. It is expected to increase to $47.5 billion out of 2022.
By pegging to the dollar, nonetheless, the Jordanian central bank can't try to influence the value of its currency on the open market in response to changing economic conditions like a recession or overheated growth.
In like manner, if the U.S. dollar gains or loses strength due to American economic conditions, that can change the buying power of the dinar even however the situation in the Jordanian economy might be very unique.
JOD to USD Peg
The JOD is pegged to the U.S. dollar at a fixed exchange rate: 1 USD is equivalent to 0.7090 JODs. For instance, suppose you were sending a wire transfer to Jordan and wanted to change over $1,000 to dinars, the exchange would bring about 709 Jordanian dinars. Since it is pegged, this exchange rate will persevere after some time rather than currencies that float in the market thus change their exchange rate over the long run.
The Bottom Line
The Jordanian dinar is the currency of the Kingdom of Jordan. It has been pegged to the USD beginning around 1995 and has since partaken in a stable and strong currency. By pegging its currency to the USD it has delighted in financial stability; notwithstanding, the country's economy is stale and has experienced terrorism in the region as well as an inefficient public sector.
Features
- The Jordanian dinar (JOD) has been the national currency of Jordan starting around 1950.
- By pegging the dinar to the dollar, Jordan gets the benefit of a stable currency system, significance its neighborhood banks are probably going to draw in deposits.
- The dinar is pegged to the U.S. dollar at a rate of 0.7090 per one dollar and has been so beginning around 1995.
- The current series of banknotes have categories of 1, 5, 10, 20, and 50 dinars.
- Issued dinars have the official name of the country, the Hashemite Kingdom of Jordan, imprinted on them.
FAQ
Why Is the Jordanian Dinar So Expensive?
The Jordanian dinar is costly in light of the fact that its currency is pegged to the USD. The country keeps fixed exchange rates as its currency doesn't float from changes in supply and demand. Rather, the government has a tight monetary policy that limits the value of the currency.
Is the Jordanian Dinar Strong?
Indeed, the Jordanian dinar is a strong currency since it is pegged to the U.S. dollar instead of the strength of its economy.
How Do You Calculate the JOD Exchange Rate?
You can work out the JOD exchange rate to any currency by utilizing a currency converter, for example, at XE.com. The exchange rate of the JOD to USD is fixed thus continues as before. One USD is equivalent to 0.709 JODs.
Why Is JOD Pegged Against the USD?
The primary explanation Jordan pegged its currency to the USD is for the very reason that any country would do as such: financial stability. The USD is perhaps of the most stable and widely circled currency. Accordingly, its value doesn't vacillate fiercely. By pegging its currency to the USD, Jordan balances out its currency and its financial system. Having a stable currency and financial system draws in greater investment, which grows a country's economy and the quality of life for its residents.
