Broad money Supply Grows by 2 Percent in the Sultanate at December End 2019

Muscat, Narrow money stock (M1), when measured year-on-year basis, increased considerably by 8.4 percent to RO5.3 billion, according to the bulletin released by the Central Bank of Oman (CBO).

Quasi-money (Rial Omani saving and time deposits, certificates of deposits issued by banks, margin deposits and foreign currency denominated deposits) registered a drop of 0.5 percent as at the end of December 2019.

Broad money supply M2 (M1 plus quasi-money) grew by 2 percent and stood at RO17.8 billion.

The interest rate structure of conventional banks witnessed a mixed trend in December 2019 when compared with that a year ago. The weighted average interest rate on RO deposits increased from 1.899 percent in December 2018 to 2.006 percent in December 2019 while the weighted average RO lending rate inched up from 5.329 percent to 5.453 percent during the same period.

On the other hand, the overnight Rial Omani domestic inter-bank lending rate declined to 2.139 percent in December 2019 from 2.141 percent a year ago. The average Repos rate for liquidity injection by the CBO also stood lower at 2.236 percent during December 2019 in comparison with 2.934 percent in December 2018.

Source: Oman News Agency