Broad money supply in Oman rises 3.2 per cent to RO16.1bn

Broad money supply M2 (M1 plus quasi-money) of banks in Oman grew by 3.7 per cent to reach RO16.1bn at the end of October 2017 during the same period in 2016.

Narrow money stock (M1) registered a year-on-year (YoY) decline of 1.9 per cent to reach OMR5 billion, at the end of October 2017.

However, quasi-money (Rial Omani saving and time deposits, certificates of deposit issued by banks, margin deposits and foreign currency denominated deposits) witnessed a growth of 6.4 per cent during the period.

In respect of domestic interest rate structure of conventional banks, the weighted average interest rate on Rial Omani deposits increased to 1.670 per cent in October 2017 from 1.384 per cent a year ago, while the weighted average Rial Omani lending rate increased to 5.190 per cent from 5.040 per cent during the same period.

The average Repo rate for liquidity injection by the Central Bank of Oman (CBO) stood at 1.736 per cent per annum during the month of October 2017. The overall hardening of interest rates reflects some tightening of liquidity in the banking system.

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