CBO dismisses Omani rial depreciation rumours

MUSCAT: Rumours on depreciation of the Omani rial were scotched by the Central Bank of Oman (CBO) on Wednesday.

Hamoud bin Sangour Al Zadjali, Executive President of the CBO affirmed the strength and efficiency of the Omani rial adding that ‘ there is no change in its value’.

In a statement, the CBO Executive President dismissed the rumours about depreciation of the Omani rial exchange rate in some Gulf states, adding that the monetary reserves at the Central Bank of Oman are good and enough to cover the Omani rial.

Enhancing the position

He added that the Sultanate’s monetary and economic conditions have contributed to enhancing the position of the Omani rial in terms of the exchange rate and purchasing power.

He affirmed that the CBO main- tains enough foreign reserves and adopts a monetary and banking policy that enhances monetary stability and maintain the attractiveness of the Omani rial as a mean for local savings.

This policy ensures stability of the fixed exchange rate of the Omani rial which in turns leads to maintaining its purchase power against the different currencies.

Fixed exchange rate

Since 1973, the Sultanate adopts a fixed exchange rate of the Omani rials against the U.S. dollar; the most important currency in the world and the most used currency in international trade, he further said. ‘The latest data affirms the continuous appreciation of the U.S. dollar against other currencies which in turn led to appreciation of the value of the Omani rial against such currencies, thus enhancing the purchase power of the Omani rial, he concluded.