MUSCAT: The money supply in Oman its broad sense grew by 2.8 per cent year-on-year, to reach RO 21.4 billion by the end of June 2023, while cash in its narrow sense decreased by 4.8 per cent.
The rise in cash in a broad sense was attributed to the increase in quasi-money by 5.9 per cent, which consists of the sum of savings deposits, term deposits in Omani rials and certificates of deposit issued by banks, in addition to margin accounts and all deposits in foreign currency with the banking sector.
Cash with the public increased during the same period by 2.5 per cent, while demand deposits decreased by 6.9 per cent.
With regard to the interest rate structure of conventional commercial banks, the weighted average interest rate on deposits in Omani rial increased from 1.870 per cent in June 2022 to 2.313 per cent in June 2023, while the weighted average interest rate on loans in Omani rials decreased from 5.502 per cent to 5.434 per cent during the same period in 2022.
As for the average interest rates in the inter-bank lending market for one night, it recorded an increase of 5.350 per cent in June 2023, compared to 1.450 percent in June 2022.
This came as a result of the increase in the weighted average interest rate on repurchases to 5.750 per cent compared to 1.875 per cent during the same period last year, in line with the policies of the US Federal Reserve. — ONA
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