Broad money supply in Oman grows by 12.7%

Muscat: Oman’s broad money supply witnessed a growth of 12.7 percent on an annual basis, reaching OMR24.1 billion by the end of June 2024.

Data issued by the Central Bank of Oman (CBO) indicated that this increase came as a result of the increase in narrow money by 16.7 percent, and quasi-money by 11.2 percent, which consists of the total savings deposits and time deposits in Omani riyals, plus certificates of deposit issued by banks, in addition to margin accounts and all deposits in foreign currency in the banking sector.

Cash held by the public decreased by 9.2 percent at the end of last June, while demand deposits increased by 24.6 percent.

With regard to the interest rate structure of conventional commercial banks, the weighted average interest rate on deposits in Omani riyals increased from 2.313 percent in June 2023 to 2.651 percent in June 2024. The weighted average interest rate on loans in Omani riyals increased from 5.434 percent to 5.581 percent during the same period.
The average interest rates in the overnight interbank lending market recorded an increase of 5.402 percent in June 2024 compared to 5.350 percent in June 2023.

This is due to the increase in the weighted average interest rate on repurchase operations to reach 6 percent compared to 5.750 percent during the same period last year, in line with the policies of the US Federal Reserve.