Broad Money Supply M2 (M1 plus quasi-money) Rises 11 Pc

Muscat, Monetary aggregates data indicates narrow money (M1) at the end of August 2020 increased by 11.8 percent to RO 5.7 billion on a Y-o-Y basis.

Likewise, quasi-money (Rial Omani saving and time deposits, certificates of deposit issued by banks, margin deposits and foreign currency denominated deposits) registered a significant increase of 10.7 percent during this period.

Broad money supply M2 (M1 plus quasi-money) grew by 11.0 percent and stood at RO 19.1 billion.

The weighted average interest rate on RO deposits decreased marginally from 1.954 percent in August 2019 to 1.943 percent in August 2020, and the weighted average RO lending rate increased from 5.435 percent to 5.482 percent during the same period.

Meanwhile, the overnight Rial Omani domestic inter-bank lending rate fell significantly to 1.100 percent in August 2020 from 2.736 percent a year ago, reflecting transmission of policy rate cuts by the Federal Reserve.

The average Repos rate for liquidity injection by the CBO also stood lower at 0.5 percent during August 2020 in comparison with 2.699 percent in August 2019.

Source: Oman News Agency