Muscat: The Omani riyal’s effective exchange rate index increased by 2.1%, reaching 117.6 points by the end of May 2024. This data, released by the National Centre for Statistics and Information, highlights the Sultanate’s financial sector’s strong performance.
Local liquidity in Oman rose substantially, growing by approximately RO 2.4 billion to a total of RO 23.73 billion by the end of May 2024. This marks an 11.5% increase compared to the same period in 2023.
However, total cash issued decreased by 1.9%, recording RO 1.63 billion compared to RO 1.66 billion in May 2023. In contrast, the narrow money supply, which includes cash outside the banking system, current accounts, and demand deposits in local currency, rose by 7.3%, reaching RO 6.28 billion, up from RO 5.85 billion in May 2023.
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The Central Bank of Oman also reported an 8.9% increase in total foreign assets, which amounted to RO 7.37 billion by the end of May 2024, compared to RO 6.77 billion in the same period the previous year.
Private sector deposits in commercial banks and Islamic windows surged by 14%, reaching RO 20.4 billion, up from RO 17.9 billion in May 2023. Additionally, total loans and financing in these institutions grew by 3.2%, totalling RO 31.08 billion, compared to RO 30.12 billion the previous year. The average interest rate on total loans also increased by 3.3% to 5.621% by the end of May 2024.
