MUSCAT: The money supply in the Sultanate of Oman experienced a notable expansion with the broad money supply (M2) increased by 1.8 per cent year-on-year, to reach RO 21.1 billion by the end of April 2023.
While cash in the narrow sense decreased by 0.9 per cent, the increase in cash in the broad sense was attributed to the increase in quasi-cash by 2.8 per cent, which consists of the sum of savings deposits and time deposits in Omani Riyals plus certificates of deposit issued by banks, in addition to collateral margin accounts. All deposits in foreign currency with the banking sector.
During the same period, cash with the public decreased by 5.3 per cent, while demand deposits increased by 0.4 per cent.
With regard to the interest rate structure of conventional commercial banks, the weighted average interest rate on deposits in Omani riyals increased from 1.891 per cent in April 2022 to 2.192 per cent in April 2023, and the weighted average interest rate on loans in Omani riyals decreased from 5.366 per cent to 5.469 per cent during the same period.
As for the average interest rates in the inter-bank lending market for one night, it recorded an increase of 5.147 per cent in April 2023, compared to 0.630 per cent in April of 2022.
This came as a result of the increase in the weighted average interest rate on repurchase operations to reach 5. 50 per cent, compared to 0.5 percent during the same period last year, in line with the policies of the US Federal Reserve. — ONA
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