Muscat: According to recent financial reports, Oman’s broad money supply experienced a substantial growth of 15.2% year-on-year, amounting to RO 24.2 billion by March 2024. This surge was driven by a 9.2% increase in cash and a 17.5% rise in cash equivalents, which include savings and time deposits in Omani riyals, certificates of deposit, security margin accounts, and foreign currency deposits within the banking sector.
However, during the same period, cash on hand with the public saw a slight decline of 2.5%, while demand deposits grew by 12.4%.
The interest rate landscape also saw notable changes. The weighted average interest rates on deposits in Omani riyals rose from 2.124% in March 2023 to 2.642% in March 2024. Similarly, the weighted average interest rates on loans in Omani riyals increased from 5.381% to 5.563%.
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In the overnight interbank lending market, average interest rates climbed slightly to 5.086% in March 2024, up from 5.073% the previous year. This increase aligns with a rise in the weighted average interest rates on repurchase operations, which jumped to 6% from 5.323%, reflecting the US Federal Reserve’s policy adjustments.
