Muscat: Narrow money, which includes cash in circulation and demand deposits, saw a robust rise of 16.5 per cent. Quasi-money, encompassing savings and time deposits in Omani riyals, certificates of deposit, and foreign currency deposits, grew by 12.1 per cent.
However, the public’s cash holdings shrank by 5.2 per cent, while demand deposits climbed by a remarkable 22.8 per cent, highlighting a shift toward non-cash financial assets.
Interest rates followed suit, with the weighted average interest rate on Omani rial deposits rising from 2.295 per cent in July 2023 to 2.705 per cent in July 2024. Loans in Omani riyals also saw an increase, with the weighted average rate edging up to 5.590 per cent from last year’s 5.397 per cent.
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The interbank lending market also reflected this trend, with the overnight rate hitting 5.317 per cent, driven by an increase in the repo rate to 6.000 per cent, in line with the US Federal Reserve’s tightening measures.
