MUSCAT : The National Centre for Statistics and Information (NCSI) reported that Oman has witnessed a robust increase in its total local liquidity, hitting RO 24.35 billion by the end of August 2024. This marks a notable 12.4% year-on-year rise, showcasing the country’s continued financial growth.

According to NCSI data, Oman’s local liquidity saw a surge of RO 2.7 billion compared to August 2023, when it stood at RO 21.67 billion. This liquidity boost reflects ongoing economic activities and the healthy flow of capital within the Sultanate.

However, alongside this liquidity increase, the actual exchange rate index for the Omani riyal slightly dipped by 1.2%, settling at 115 points from last year’s 116.4. This shift aligns with a 2.9% decline in the total cash issued, which decreased to RO 1.57 billion, down from RO 1.62 billion in August 2023.

Meanwhile, narrow money supply—which includes cash outside the banking system, current accounts, and demand deposits—jumped 23.9%, reaching RO 6.93 billion, compared to RO 5.59 billion in the same period last year.

The Central Bank of Oman also saw its foreign assets grow by 3.1%, standing at RO 6.85 billion by the end of August. Private sector deposits in commercial banks and Islamic windows increased by 11.7% to a total RO 20.80 billion, reflecting confidence in the financial system.

In the lending sector, total loans and financing across commercial banks and Islamic windows climbed by 3.3%, amounting to RO 31.41 billion. The average interest rate on these loans rose by 3.4% to reach 5.603%, slightly up from 5.418% in August 2023, signalling a modest upward trend in borrowing costs.

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