Oman's money supply rises to RO 24.2 billion

MUSCAT: The broad money supply in the Sultanate of Oman exhibited a significant growth of 15.2 per cent on an annual basis, reaching a total of RO 24.2 billion by the end of March 2024.

This surge can be attributed to a 9.2 per cent increase in cash and a 17.5 per cent rise in cash equivalents, which comprises the total of savings deposits, time deposits in Omani Rials, certificates of deposit issued by banks, security margin accounts, and all foreign currency deposits within the banking sector.

During the same period, cash held by the public decreased by 2.5 per cent, while demand deposits experienced a notable increase of 12.4 per cent.

In terms of the interest rate structure of traditional commercial banks, the weighted average interest rates on Omani Rials deposits rose from 2.124 per cent in March 2023 to 2.642 per cent in March 2024.

Similarly, the weighted average interest rates on Omani Rials loans increased from 5.381 per cent to 5.563 per cent during the same period.

Furthermore, the average interest rates in the overnight interbank lending market saw a slight increase to 5.086 per cent in March 2024 from 5.073 per cent in March 2023. This was a result of the weighted average interest rates on repurchase operations, which climbed to 6 per cent from 5.323 per cent during the same period last year, aligning with the policies of the US Federal Reserve. — ONA