What is the Jordanian dinar (JOD)?
The currency sign for the Jordanian dinar is JOD. The Jordanian dinar is the country’s official currency. The dinar comes in smaller amounts, called parts. One dinar is the same as ten dirhams, one hundred qirshes, or one thousand fils. People in Israel’s West Bank also use the dinar.
How to Understand the Jordanian Dinar (JOD)
Jordan’s legal currency was the dinar, used in July 1950. The British Mandate of Palestine and the Emirate of Transjordan, a British territory, used the Palestinian pound as their currency until 1973. When Jordan was freed, it set up the Jordan Currency Board to print and distribute money.
People think the Jordanian dinar is the fourth-most valuable coin in the world.
In 1959, the Central Bank of Jordan (CBJ) took over managing money and business. The Hashemite Kingdom of Jordan is the country’s official name that issues dinars. There are 1, 5, 10, 20, and 50 dollar bills in the present fourth run of banknotes that the CBJ is putting out. Egyptian dinar coins had Arabic numbers on them until 1992. After that, they switched to English numbers. We have tied the dinar to the U.S. dollar since 1995.
Unique Things to Think About
Jordan tied its currency to the U.S. dollar to stabilize its economy. When a country’s currency exchange rate goes up and down, it can be hard to get foreign investment. Capital may leave the country in search of safer investments.
By linking the dinar to the dollar, Jordan gets a safe currency system, which means that people are more likely to put money in its banks. More foreign direct investment (FDI) also comes into Jordan when the currency is strong.
By linking the lira to the dollar, the Jordanian central bank can’t change the value of its currency on the open market in reaction to changes in the economy, like when it’s expanding too quickly or going into a slump.
Also, suppose the U.S. dollar gets stronger or weaker because of the American economy. That can change how much the dollar is worth, even if the Jordanian economy is doing very differently.
JOD to USD Link
One U.S. dollar is equal to 0.7090 Jamaican dollars. For example, if you wanted to send $1,000 to Jordan via bank transfer and change it into Jordanian dinars, the exchange rate would be 709. If you compare this exchange rate to currencies that float on the market, which means they change value over time, you will notice that this one stays the same.
How strong is the Jordanian dinar?
There is no doubt that the Jordanian dinar is a strong currency. Its strength comes from its connection to the U.S. dollar, not its economy.
Why does the Jordanian dinar cost so much?
Having its value tied to the U.S. dollar makes the Jordanian dinar pricey. Because the country doesn’t let its exchange rates change, its currency doesn’t float when supply and demand do. Instead, the government has a strict monetary strategy that keeps the currency’s value low.
Why does JOD have a fixed value against the USD?
The main reason Jordan tied its currency to the USD is the same reason every other country would: to keep its finances stable. The U.S. dollar is one of the most steady and widely used types of money. Because of this, its value doesn’t change a lot. By linking it to the USD, Jordan makes its currency and banking system more stable. More investment comes into a country when its currency and banking system are steady. This improves the economy and the lives of its people.
How do you figure out the JOD exchange rate?
A currency calculator, like the one at XE.com, can help you determine the JOD exchange rate for any other currency. There is no change in the exchange rate between the JOD and the USD. It costs 0.709 JODs to buy one USD.
In Short
Its currency is the Jordanian dinar. It has been pegged to the USD since 1995 and has enjoyed a safe and strong currency. By tying its currency to the U.S. dollar, it has had financial security, but the economy has slowed down due to crime in the area and a government that doesn’t work well.
Conclusion
- Since 1950, the Jordanian dinar (JOD) has been the country’s currency.
- For every U.S. dollar, one dinar is worth 0.7090 dinars. This has been the case since 1995.
- By linking the dinar to the dollar, Jordan gets a safe currency system, which means that people are more likely to put money in its banks.
- The Hashemite Kingdom of Jordan is the country’s official name that issues dinars.
- The new set of bills comes in 1, 5, 10, 20, and 50 dinars.
