MUSCAT: The Central Bank of Oman (CBO) is enhancing the efficiency of monetary policy within the fixed exchange rate system, according to the latest report of Oman Vision 2040, issued here earlier this week.

The monetary policy managed by the Central Bank of Oman, alongside continuous coordination with the financial policy administered by the Ministry of Finance, plays a significant role in achieving financial stability and macroeconomic goals. Consequently, this will have a tangible positive impact on improving Oman’s credit rating, maintaining price stability, enhancing confidence in the national economy, and stimulating economic growth.

The project focuses on strengthening CBO's ability to influence local liquidity conditions by adopting a comprehensive operational framework for managing local liquidity effectively. This includes completing the institutional and legal frameworks governing the performance of the Central Bank as a lender of last resort to support financial stability.

In the context of advancing the financial sector, the apex bank is currently implementing numerous initiatives in collaboration with relevant entities. Among the most notable of these initiatives are enhancing the role of the Development Bank in financing small and medium-sized enterprises (SMEs), developing a financial adequacy system to enable financial institutions to provide diverse financing tools based on creditworthiness, establishing a venture capital fund for various segments with contributions from banks, creating a market maker and liquidity provider, and establishing a promising companies market on the Muscat Stock Exchange.

Furthermore, the programme aims to stimulate the offering and listing of companies in the capital market, develop the local debt instruments market, establish a national incubator for financial technology, and prepare a sustainable sovereign financing framework

The Small and Medium Enterprises Development Authority is working with the Central Bank of Oman to address the challenges faced by small and medium-sized enterprises in accessing facilitated loans from commercial banks. The authority has also collaborated with the National Financial Sustainability Programme and the financial sector development initiative, "Sustainability," to explore the need for a fund to guarantee loans for small and medium-sized enterprises through the Development Bank.

The "Sustainability" programme, in collaboration with the Development Bank, is set to implement an initiative to enhance the bank's role in financing small and medium-sized enterprises, ensuring that government funding is effectively directed toward financing economically impactful projects with added local value. The execution of this initiative is expected to increase lending to small and medium-sized enterprises and enhance their role in the national economy.

Lastly, the National Employment Programme has encouraged governmental sectors to provide job opportunities for freelancers. The programme’s efforts, in collaboration with the Central Bank of Oman, led to the issuance of a circular for banks and financing companies to facilitate the opening of bank accounts for freelancers, marking a significant step toward developing a support system for freelancers.

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