MUSCAT: The broad money supply in Oman witnessed a growth of 5.1 per cent on an annual basis to reach RO 21.6 billion by end of August 2023.
Despite the decrease in cash in its narrow sense by 5.5 per cent, the increase witnessed in cash in its broad sense is due to the increase in quasi-cash by 9.4 per cent, which consists of the sum of savings and term deposits in Omani rials plus certificates of deposit issued by banks, in addition to security margin accounts and all deposits in foreign currency in the banking sector.
During the same period, cash on hand with the public decreased by 2.4 per cent, and demand deposits also saw a decline of 6.3 per cent.
Regarding the interest rate structure of traditional commercial banks, the weighted average interest rates on deposits in Omani rials increased from 1.897 per cent in August 2022 to 2.410 per cent in August 2023.
The weighted average interest rates on loans in Omani rials also decreased from 5.447 per cent to 5.444 per cent during the same period, while the average interest rates in the overnight interbank lending market recorded an increase of 5.721 per cent in August 2023 compared to 2.854 per cent in August 2022.
This came as a result of the weighted average interest rates on repurchase operations rising to 6 per cent compared to 3 per cent during the same period last year, in line with the policies of the US Federal Reserve. — ONA
Oman Observer is now on the WhatsApp channel. Click here
