Muscat: The NCSI report also highlighted a significant rise in local liquidity, which surged by RO 2.8 billion to reach RO 24.2 billion, marking a 13.3 percent increase compared to July 2023. This growth in liquidity indicates an expansion in the country’s money supply, reflecting increased demand for goods and services within the domestic economy.
However, the total cash issued declined by 2.7 per cent, dropping to RO 1.61 billion by the end of July, down from RO 1.65 billion in the same period last year. Despite reduced issued cash, the narrow money supply (comprising cash outside the banking system, current accounts, and demand deposits) soared by 16.5 per cent, reaching RO 6.53 billion.
Foreign assets held by the Central Bank of Oman witnessed a slight dip of 1.2 per cent, standing at RO 6.77 billion by the end of July 2024, compared to RO 6.86 billion in July 2023.
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Private sector deposits in commercial banks and Islamic windows recorded an increase of 13.9 percent, amounting to RO 20.69 billion, up from RO 18.17 billion during the same period in 2023.
In the lending sector, total loans and financing provided by commercial banks and Islamic windows grew by 3.4 per cent, reaching RO 31.3 billion by the end of July. The average interest rate on these loans rose to 5.59 per cent, a 2.9 per cent increase from the previous year, indicating a tightening credit market amid rising rates.
