Muscat: The surge in liquidity reflects broader growth across key financial indicators. Commercial banks and Islamic windows saw their total loans and financing climb by 6.5%, reaching RO 32.48 billion in January 2025, up from RO 30.49 billion a year earlier. The average interest rate on total loans also saw a modest increase of 1.1%, standing at 5.608% by the end of January.
Private sector deposits mirrored the positive trend, rising by 7.2% to RO 20.97 billion, compared to RO 19.56 billion in January 2024. Meanwhile, the Central Bank of Oman recorded a 5.3% rise in total foreign assets, which stood at RO 7.096 billion, up from RO 6.741 billion in the same period last year.
One of the most notable jumps came in the narrow money supply (M1)—which includes cash outside the banking system, current accounts, and demand deposits in local currency—growing by a significant 15.5% to RO 7.03 billion.
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However, issued cash saw a decline of 8.3%, falling to RO 1.44 billion, down from RO 1.575 billion the previous year, indicating a shift towards digital and bank-based transactions.
Additionally, the effective exchange rate index of the Omani riyal strengthened to 119.1 points, a 2.7% rise from 116 points in January 2024, further reinforcing the currency’s resilience in international markets.
