Muscat: According to the Central Bank of Oman, the growth was driven by a sharp 18.6% rise in narrow money and a 4.4% increase in quasi-money, reflecting shifting trends in savings and deposit behaviour across the Sultanate.
The quasi-money component includes savings and time deposits in Omani riyals, certificates of deposit, margin accounts, and foreign currency deposits within the banking sector.
Interestingly, cash held by the public declined by 15.3%, while demand deposits surged by 27.2%, indicating a preference for electronic and account-based transactions over physical currency.
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The CBO data also shows notable changes in the interest rate structure:
The weighted average interest rate on Omani riyal deposits decreased from 2.636% in December 2023 to 2.546% in December 2024.
Meanwhile, the weighted average rate on Omani riyal loans rose from 5.513% to 5.644%, suggesting a higher cost of borrowing.
In the overnight interbank lending market, the average interest rate dipped to 5.072% from 5.417% a year earlier. This was partly due to a decrease in the repurchase operations rate, which dropped to 5.145% from 6%, aligning with the broader monetary policy trends led by the U.S. Federal Reserve.
