Broad money supply in Oman grows to $61.5bln

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Muscat: The broad money supply witnessed a growth of 11.5 percent on an annual basis to reach OMR23.7 billion by the end of May 2024.

The data issued by the Central Bank of Oman (CBO) attributed this increase to the increase in narrow money by 7.3 percent and quasi-money by 13.1 percent, including total savings deposits and time deposits in Omani riyals, certificates of deposit issued by banks, margin accounts and all foreign currency deposits in the banking sector.
During the same period, cash held by the public decreased by 3.6 percent, while demand deposits increased by 10.4 percent.

With regard to the interest rate structure of conventional commercial banks, the weighted average interest rate on deposits in Omani riyals increased from 2.242 percent in May 2023 to 2.627 percent in May 2024, while the weighted average interest rate on loans in Omani riyals increased from 5.443 percent to 5.621 percent during the same period.
The average interest rate in the interbank lending market for one night recorded an increase of 5.501 percent in May 2024 compared to 5.295 percent in May 2023.

This came as a result of the increase in the weighted average interest rates on repurchase operations to reach 6 percent compared to 5.726 percent during the same period last year, in line with the policies of the US Federal Reserve.