In March 2024, the Omani Rial stabilized at 116.8 points, reflecting a 2.7% increase according to data released by the National Centre for Statistics and Information (NCSI). The broad money supply (M2) reached OMR24,242.1 million by the end of March 2024, marking a significant 15.2% increase compared to the same period in 2023. On the other hand, narrow money supply (M1) saw a 9.2% rise to OMR6,583.8 million from OMR6,027.1 million in March 2023.
Total foreign assets at the Central Bank of Oman (CBO) saw a 3.4% increase to OMR6,699.6 million by the end of March 2024 compared to the previous year. Private sector deposits in commercial banks and Islamic windows also experienced growth, reaching OMR20,152.5 million, a significant increase of 13.7% compared to March 2023. Additionally, total loans and financing in commercial banks and Islamic windows rose by 2.9% to OMR30,762.5 million by the end of March 2024, compared to OMR29,899.1 million in the previous year.
Despite these positive trends, the average interest rate on total loans increased by 3.4% by the end of March 2024, reaching 5.563%. This uptick in interest rates could have various implications for borrowers and the overall economy. It is important for individuals and businesses in Oman to carefully consider the impact of rising interest rates on their financial decisions and planning.
The stable exchange rate index of the Omani Rial and the growth in money supply, foreign assets, and private sector deposits reflect positive economic indicators for Oman. These developments could lead to increased economic activity and investment opportunities in the country. The rise in total loans and financing also suggests that there is growing demand for credit among businesses and individuals in Oman.
As Oman continues to see growth in various economic indicators, there may be a need for policymakers to closely monitor the impact of these developments on inflation, employment, and overall economic stability. It is important for the government and central bank to adopt appropriate measures to ensure sustainable economic growth and financial stability in the country. By staying vigilant and proactive, Oman can capitalize on these positive trends and further strengthen its position in the global economy.
