International Journal of Economics and Financial Research ISSN(e): 2411-9407, ISSN(p): 2413-8533 Vol. 5, Issue. 10, pp: 221-226, 2019 URL: https://arpgweb.com/journal/journal/5 DOI: https://doi.org/10.32861/ijefr.510.221.226 Academic Research Publishing Group *Corresponding Author 221 Original Research Open Access The Role of Central Bank of Jordan in Economic Development Dr. Khaled Abdalla Moh'd AL-Tamimi * Associate professor Department of Financial and Administrative Sciences Irbid University College Al-Balqa' Applied University, Jordan Dr. Mohammad Sulieman Jaradat Associate professor Department of Banking and Financial Sciences Ajloun National University, Jordan Dr. Ashraf Mahammad Al-Rjoub Associate Professor Department of Financial and Administrative Sciences Irbid University College Al-Balqa' Applied University, Jordan Abstract The main purpose of this research is to study and highlight that central bank of Jordan (CBJ) plays an important role in economic development. The objective of the financial organization shall be to keep up financial and money stability, to confirm the interchangeability of the Dinar, and to contribute in achieving the banking and money stability within the Kingdom likewise as promoting sustained economic process in accordance with the overall economic policies of the government. To achieve the above- mentioned objectives, CBJ assumes many tasks portrayed in drawing and implementing the financial policy within the Kingdom through an integrated system of monetary policy instruments, setting a evaluation policy of the Dinar compatible with the Jordanian economy, maintaining and managing the Kingdom's reserves of gold and foreign currencies, regulation credit within the Jordanian economy so as to realize financial and money stability likewise as comprehensive economic process, and issue and regulation bank notes and coins. Subsequently, the central bank plays necessary role within the economic resource allocation of the country. The banking industry may be a major issue that affects the organization of social and economic life cycle within the economies of the planet. it is thought about as associate degree indicator of economic and social growing.. Also, developed financial set up ought to be characterized by the existence of a contemporary and complicated banking industry that contributes to achieving economic balance. It conjointly encourages domestic and foreign investment through the banking system's ability to states. The aim of the banking industry is to draw in savings domestically and abroad, and direct those savings into productive investment. As a result, this contributes to the accomplishment of economic and social development method, and conjointly facilitates investment activity. Keywords: Central bank; Economic development; Gross domestic product; Monetary policy. CC BY: Creative Commons Attribution License 4.0 1. Introduction The central Bank is a different state of governmental organizations that ascendance money related protection approach, controls bank funds and gives budgetary administration including financial research (Abu Aliqah and Al Rfou, 2012). The most objective lens is to stabilize and maintain the nation's currency, controls and keep state initial and stop increasing inflation. Moreover, central bank has an effect on economic outgrowth by restraint the liquid within the economic system they need many money many fiscal policy peckers to attain these objectives that if achieved would graphite to improvement in financial stability (Brian et al., 2016).To have effective money related framework Exchange investment funds bank must set an accumulation prerequisite that commits buck private bank expanding on how much money they need on menus this withdrawnness is required in face of any monetary issues happen it will keep them from crumbling (Amadeo and Kimberly, 2017). Central Sir Joseph Banks used open market operations to shop for and sell protection. This allowed changes to money available while not dynamical the reserve demand. This tool was used throughout the money crisis of 2008 (Brian et al., 2016). Banks bought government bonds and mortgage backed securities to stabilize and maintain the banking industry. On the opposite hand, commercial banks should set targets on stake rates they charge their node that scout rates for loans, mortgages and bonds rearing involvement rates and slows growth that prevents inflation (Bindseil et al., 2003). Financial policy takes concerning six calendar months for the result to travel through the economy .Banks can misread monetary information as the Federal Reserve System in 2006. However, if Central banks invigorate the economy excessively, they can trigger inflation as realized that Central banks evade inflation (Vittorio, 2010). National banks control their individuals by requiring adequate state army to screen potential advance misfortunes. They are additionally in charge of guaranteeing the budgetary solidness and ensuring investors' fiscal store (Amadeo and Kimberly, 2017). They additionally routine as personal banks that mean they physical method checks and lend cash to their members; they additionally store currency in their interchange reserve.