Local liquidity in Oman increases 12.4% to RO 24.3 billion as the country’s economy improves.

By the end of August 2024, local liquidity in Oman increased by 12.4% to RO 24.355 billion, according to new data from the National Centre for Statistics and Information.

MUSCAT: According to the National Centre for Statistics and Information (NCSI), Oman’s total local liquidity increased significantly, reaching RO 24.35 billion by the end of August 2024. This represents a noteworthy 12.4% annual increase, demonstrating the nation’s ongoing economic expansion.

NCSI data indicates that Oman’s local liquidity increased by RO 2.7 billion from August 2023, when it was RO 21.67 billion. This increase in liquidity is a result of the Sultanate’s robust capital flow and continuous economic activity.

But in tandem with this rise in liquidity, the Omani riyal’s actual exchange rate index fell 1.2%, to 115 points from 116.4 last year. This change corresponds with a 2.9% drop in total cash issued, which dropped from RO 1.62 billion in August 2023 to RO 1.57 billion.

In the meantime, the narrow money supply, which comprises demand deposits, current accounts, and cash outside the banking system, increased by 23.9% to RO 6.93 billion from RO 5.59 billion during the same time last year.

By the end of August, the foreign assets of the Central Bank of Oman had increased by 3.1% to RO 6.85 billion. Reflecting confidence in the financial system, private sector deposits in commercial banks and Islamic windows rose 11.7% to a total of RO 20.80 billion.

The total amount of loans and financing made through commercial banks and Islamic windows increased by 3.3% to RO 31.41 billion. There was a minor increase in borrowing expenses, as evidenced by the 3.4% increase in the average interest rate on these loans, which increased to 5.603% from 5.418% in August 2023.

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