Narrow money supply increases 6.8 per cent

MUSCAT: The Sultanate registered a 6.8 per cent year-on-year growth in narrow money supply (M1), which increased to over RO 5.2 billion by the end of February 2016 from RO 4.86 billion in the same period of 2015.

Broad Money Supply (M2) on the other hand rose 7.9 per cent to reach RO 15.21 billion during the period as against RO 14.1 billion last year, according to data released by the National Centre for Information (NCSI).

Narrow money supply in February was lower than that in January ( RO 5.32 billion), while broad money supply was higher than that in January, which stood at RO 15.19 billion.

The total value of currency issued in February increased 7.7 per cent to RO 1.66 billion compared with RO 1.54 billion in the same month last Statistics and year. Foreign Assets at the Central Bank of Oman declined 7 per cent by the end of February to RO 6.41 billion from RO 6.89 billion last year, while Private Sector Deposits with commercial banks saw a growth of 12 per cent over the period to RO 12.74 billion compared with RO 11.18 billion a year ago.

Commercial banks’ total credit by February end increased 19.9 per cent to RO 20.54 billion from RO 17.13 billion during the same period of 2015. Average interest rate on total credit fell by 3.4 per cent to 4.489 per cent in February from 4.649 per cent registered in the same month last year.

Effective exchange rate index of Omani Rial saw an upward revision of 2.1 per cent to 105 points in February as against 102.8 points in the same month of 2015.