World’s 2nd-longest serving central banker relieved
dubai — Oman’s ruler replaced the head of the central bank after 26 years in the job as the Gulf Arab monarchy struggles to cope with the impact of low oil prices on its economy.
His Majesty Qaboos bin Said Al Said, Sultan of Oman, in a decree published by the state-run news agency late on Tuesday, appointed Tahir bin Salim Al Amri as the central bank’s executive president. He replaced Hamud Sangur Al Zadjali, who served in the post since 1991, making him the world’s second-longest serving central banker after Romania’s Mugur Isarescu, according to data compiled by Bloomberg.
Al Zadjali, a Boston University graduate, was replaced hours after Moody’s Investors Service cut Oman’s banking outlook to negative from stable to reflect a reduction in the government’s ability to support the country’s banks as well as weaker economic growth and tightening liquidity.
With smaller oil reserves and less of a cushion in government savings than its wealthier neighbours, Oman is one of the most vulnerable countries in the GCC as lower oil prices pressure state finances. The budget deficit soared to more than 20 per cent of economic output last year, according to International Monetary Fund data.
“The priority for Oman is on the fiscal side and they didn’t do very much on that despite the oil price deterioration,” said Dima Jardaneh, head of Middle East and North Africa research at Standard Chartered in Dubai. “They needed to cut spending in a significant way but they weren’t able to over the past two years,” she said. “I think they were still counting on revenue measures to kick in but that will take much longer to make a difference.” — Bloomberg