Muscat: The latest data released by Oman’s Central Bank reveals a robust growth in the country’s broad money supply, which expanded to RO 23.6 billion by April 2024, marking a significant 12% increase from the previous year. This growth was primarily fueled by a 7% rise in narrow money and a notable 13.9% increase in quasi-money.

Quasi money, encompassing total savings and time deposits in Omani riyals, certificates of deposit, margin accounts, and foreign currency deposits within the banking sector, contributed significantly to the overall surge. Meanwhile, cash held by the public experienced a slight decline of 7%, contrasting with an 11.2% increase in demand deposits during the same period.

In terms of interest rates, Oman’s conventional commercial banks witnessed upward trends. The weighted average interest rate on deposits in Omani riyals rose from 2.192% in April 2023 to 2.580% in April 2024, while the corresponding rate on loans increased from 5.366% to 5.604%. Similarly, interbank lending rates saw an uptick, with overnight rates climbing to 5.212% in April 2024, compared to 5.147% a year earlier.

These movements reflect broader economic adjustments aligned with global trends, notably influenced by policies set forth by the US Federal Reserve. The increase in the weighted average interest rate on repurchase operations, reached 6.000% from 5.500% a year ago.