Oman money supply grows 12.7%

MUSCAT: Broad money supply in the Sultanate of Oman increased by 12.7 per cent year-on-year to RO 28.60 billion at the end of May 2026, driven by strong growth in cash and demand deposits, Central Bank of Oman data showed.
Narrow money, which includes currency in circulation and readily accessible deposits, rose by 26.9 per cent from a year earlier.
Quasi-money increased by 7.1 per cent. It comprises savings and time deposits denominated in Omani rials, certificates of deposit issued by banks, margin accounts and foreign-currency deposits held within the banking system.
Currency in circulation increased by 12.1 per cent, while demand deposits climbed by 29.8 per cent, reflecting higher levels of immediately available liquidity in the economy.
The expansion in money supply came as borrowing and deposit rates at conventional commercial banks declined.
The weighted average interest rate on Omani rial deposits fell to 2.366 per cent in May 2026 from 2.708 per cent in the same month last year.
The weighted average rate charged on Omani rial loans declined to 5.327 per cent from 5.551 per cent over the same period.
Interbank funding costs also eased. The average overnight interbank lending rate fell to 3.375 per cent in May, compared with 4.394 per cent a year earlier.
The weighted average rate on repurchase agreements declined to 4.250 per cent from 5.000 per cent, reflecting changes in monetary conditions and interest-rate moves by the US Federal Reserve.
Oman’s rial is pegged to the US dollar, meaning domestic monetary policy broadly follows changes in US interest rates to maintain the currency arrangement.
The decline in lending rates could support credit demand among businesses and households, while lower deposit rates reduce the returns available to savers on rial-denominated accounts. — ONA