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What is the Jordanian dinar (JOD)?

Credit Ratings & Outlook

In the latest credit ratings from December 1970, Moody's gives Jordan a Ba2 rating, with a negative outlook. Finally, S&P last issued a BB rating, with a negative outlook.

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

GDP

In 2010 the total GDP was $27,573,536,000 in US Dollars, while the per capita GDP was $4,559. It grew by 3.11% over the previous year.

Unemployment

The latest unemployment rate for 2010 is 9.99%.

Consumer Price Index

The latest consumer price index for 2010 is 134.23.

Political Structure

The current head of the government is Prime Minister Fayez al-Tarawneh, and the head of state is King Abdullah II (in an executive role).

Currency Details

The Jordanian dinar, denoted by JOD, is the official currency of Jordan. Subdivided into 100 piastres or fils, the JOD circulates both as coins and banknotes. On July 1, 1950, the dinar replaced the Palestinian Pound. In past years, the Central Bank of Jordan supported a fixed exchange rate between the Jordanian dinar and the US dollar.

Moody’s Rating
Ba2, 21 Aug 2003
S&P Rating
BBB-

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

What does it look like?

Political Structure

The Jordanian political system is a constitutional monarchy with three branches of government. The executive branch consists of a monarch (a king and a crown prince), prime minister, and cabinet. No elections take place in Jordan, but instead the monarch is hereditary and appoints the prime minister. The prime minister appoints the cabinet with a contributed assessment by the monarch. The legislative branch is a bicameral National Assembly, which consists of the Senate that is also called the House of Notables. There are 55 members who are appointed by the monarch to serve four-year terms. Another section of the legislative branch is the House of Representatives, also known as the House of Deputies. There are 110 members who are elected by popular vote to serve a four-year term, six of those seats reserved for women. The judicial branch consists of a Court of Cassation and a Supreme Court. The final appeal takes place in the Supreme Court.

Prominent Figures

Chief of State King ABDALLAH II (since 7 February 1999); Crown Prince HUSSEIN (born 28 June 1994), eldest son of King ABDALLAH II
Head of Government Prime Minister Samir al-RIFAI (since 9 December 2009)
Cabinet Cabinet appointed by the prime minister in consultation with the monarch
Elections the monarch is hereditary; prime minister appointed by the monarch

Key Economic Factors

While many countries in the Middle East thrive on their oil reserves, Jordan is an exception in this trend. The country’s landlocked position brings with it scarce water supplies and an inadequate supply of natural resources (namely oil and coal). As such shortages often translate into problems such as debt, poverty and unemployment, Jordan relies on foreign aid from its oil-rich neighboring countries. Recently, Jordan has been trying harder to improve its living standards by engaging in economic reform. Since King Abdallah has taken throne, he has worked very closely with the IMF, been careful when implementing monetary policy, made considerable progress with privatization, and relaxed the trade regime just enough so that it has assured Jordan’s membership in the World Trade Organization. All of these actions have helped Jordan become more productive and put it on the foreign investment map. Jordan’s main goals are to reduce its reliance on foreign aid, lower its budget deficit, and increase incentives to invest in order to encourage job creation.

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