Money supply rises 8.1% to RO 24.9 billion in 2024
Published: 04:04 PM,Apr 05,2025 | EDITED : 08:04 PM,Apr 05,2025
The increase was primarily driven by an 18.6 per cent surge in narrow money.
MUSCAT: Oman’s broad money supply (M2) expanded by 8.1 per cent year-on-year to RO 24.9 billion by the end of December 2024, according to data released by the Central Bank of Oman (CBO).
The increase was primarily driven by an 18.6 per cent surge in narrow money (M1), along with a 4.4 per cent rise in quasi-money, which includes savings and time deposits in Omani rials, certificates of deposit issued by banks, margin deposits, and all foreign currency deposits within the banking system.
Notably, while currency held by the public dropped by 15.3 per cent, demand deposits saw a sharp increase of 27.2 per cent, reflecting a shift in liquidity preferences.
On the interest rate front, the weighted average interest rate on Omani rial deposits at conventional commercial banks eased to 2.546 per cent in December 2024, down from 2.636 per cent a year earlier. Meanwhile, the rate on Omani rial-denominated loans climbed to 5.644 per cent, up from 5.513 per cent.
Interbank rates also saw a downward trend, with the average overnight rate in the interbank lending market declining to 5.072 per cent in December 2024, from 5.417 per cent in December 2023. This was influenced by a reduction in the weighted average repo rate, which fell to 5.145 per cent from 6 per cent over the same period, mirroring monetary policy adjustments by the US Federal Reserve. — ONA
The increase was primarily driven by an 18.6 per cent surge in narrow money (M1), along with a 4.4 per cent rise in quasi-money, which includes savings and time deposits in Omani rials, certificates of deposit issued by banks, margin deposits, and all foreign currency deposits within the banking system.
Notably, while currency held by the public dropped by 15.3 per cent, demand deposits saw a sharp increase of 27.2 per cent, reflecting a shift in liquidity preferences.
On the interest rate front, the weighted average interest rate on Omani rial deposits at conventional commercial banks eased to 2.546 per cent in December 2024, down from 2.636 per cent a year earlier. Meanwhile, the rate on Omani rial-denominated loans climbed to 5.644 per cent, up from 5.513 per cent.
Interbank rates also saw a downward trend, with the average overnight rate in the interbank lending market declining to 5.072 per cent in December 2024, from 5.417 per cent in December 2023. This was influenced by a reduction in the weighted average repo rate, which fell to 5.145 per cent from 6 per cent over the same period, mirroring monetary policy adjustments by the US Federal Reserve. — ONA