Oman: The Omani rial’s effective exchange rate surged by 3.8 percent, reaching 115.2 points in May 2023, up from 111 points in May 2022, according to data released by the National Center for Statistics and Information (NCSI).
By the end of May 2023, the Central Bank of Oman (CBO) witnessed a rise in total foreign assets by 0.9 percent, reaching OMR 6.76 billion, compared to OMR 6.70 billion in May 2022.
Preliminary data from the National Center for Statistics and Information indicated a substantial 4.5 percent increase in local liquidity, reaching OMR 21.28 billion in May 2023, compared to the corresponding period in 2022.
However, the total cash supply saw a decrease of 3.7 percent, falling to OMR 1.65 billion in May 2023, down from OMR 1.72 billion in May 2022.
Meanwhile, the narrow money supply (M1), encompassing cash outside the banking system, current accounts, and demand deposits in local currency, experienced a 1.1 percent growth, reaching OMR5.84 billion in May 2023, up from OMR 5.78 billion in May 2022.
Conversely, private sector deposits in commercial banks and Islamic windows witnessed a significant rise of 4.3 percent, soaring to approximately OMR 17.89 billion in May 2023, compared to OMR 17.15 billion during the same period in 2022.
During this period, total loans and financing in commercial banks and Islamic windows saw an impressive 6.4 percent increase. Moreover, the average interest rate on total loans dropped by 0.9 percent. The Omani economy has demonstrated various fluctuations in key indicators such as the exchange rate, foreign assets, local liquidity, cash supply, and money supply. While certain areas have experienced growth, others have faced declines, indicating the need for vigilant monitoring and strategic economic measures in the future.