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Treasury and Investment

Bank of Jordan Treasury department provides a broad range of investment and hedging tools products for our corporate and SMEs customers, including the following:

  • Forward FX:

We provide end to end hedging solutions in G7 currencies and GCC currencies using outright forward contracts for tenor upto 18 months.  Outright forwards is one of the most preferred solutions used by corporate to hedge their future FX exposure that has been identified and expected to be delivered on a future date. The outright forward contract gives very good opportunity for the corporates to hedge a future exposure taking the advantage of favorable spot rate.

  • Currency Options:

We also provide hedging solutions to corporates using vanilla currency options in G7 currencies.  Currency options provides unlimited upside in hedging while capping the downside to the strike price agreed while entering the contract.  However, for seeking this benefit, customers will be entitled to pay an upfront premium that would be determined based on market conditions prevailing when executing the deal.

  • Structured FX Solutions:

We also offer customers structured FX solutions in G7 currencies using a combination of both forward and currency options to bring effectiveness to the hedging program. We would work very closely with the customer and help them develop effective solutions based on the market view and breakeven cost identified by the customer for a business cycle.  

  • Interest rate swaps:

We do provide interest rate hedging solutions in USD by way of Interest rate swaps.  Interest rates Swaps offer effective hedging solutions to protect for rising or falling interest rates for floating and fixed rate loans respectively.

  • Repo:

We also provide funding to banks and customers by way of Repo. Repo is a generic name for both repurchase transactions and buy/sell-backs. In a repo transaction, a bank of a customer sells an asset (usually fixed-income securities) to BOJ at one price and commits to repurchase the same at a different price at a future date. The difference between the price paid at the start of a repo and the price received on the future date is the return on the cash that BOJ has is effectively lent to the customer or bank.

  • Fixed Income Products:

We are making market in GCC bonds and would be able to offer competitive pricing for Sovereigns, GRE, FI and Corporate bonds.

For more information, please contact your Relationship manager, or contact Treasury directly on:

[email protected]

[email protected]