Muscat, August 9 - The Sultanate has enough reserves to continue with its commitment to maintaining the peg of its currency against the US dollar.
This vote of confidence was expressed by Hamood Sangoor al Zadjali, Executive President of Central Bank of Oman (CBO).
“The rial’s peg to the US dollar remains intact. Total foreign reserves at the CBO have increased substantially in 2016,” he said in comments in the apex bank’s sustainability report.
The CBO continues to maintain a comfortable level of foreign reserves, which is sufficient to back up the peg, he said.
“The level of total reserves is adequate to achieve the CBO’s objective of maintaining the peg at its level. This level of reserves is also adequate to maintain the usual import benchmark. Meeting these two objectives supports financial stability,” the report points out.
CBO’s net foreign assets position in 2016 stood at RO 5,666.7 million at the end of 2016.
The imports of merchandise goods cover to the foreign exchange reserves increased to 8.3 months at the end of 2016 from 7.8 months as at the end of 2015. “This cover in terms of current account payments decreased to 4.0 months from 4.1 months during this period,” adds the report.
SAMUEL KUTTY
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