Hamoud bin Sanjour al- Zadjali, Executive President of the of the Central Bank of Oman (CBO) said that the value of the national currency in the future contract has not changed and that it is stable against Gulf currencies.
He pointed out that many incorrect and unconfirmed news about the fluctuation of the value of the Omani currency have been circulated, especially through the social networks. This urged the Central Bank of Oman to issue explanatory statements for the public to confirm to those who circulated the news that the Sultanate is still committed to Pegging the Omani Riyal to U.S dollar.
He affirmed that the news about depreciation of Omani Riyal exchange rate against some Gulf currencies are not true. He added that such news are published within the economic pressures on the oil producing countries due to oil price slump since last year.
He also said that the interest rate of the Omani banking system are determined as per the interaction among the supply and demand forces and within the guidelines of the Omani economy, which include free market. He noted that CBO has realized
very early that the banking sector should be guided to maximize loans to production sectors rather than focusing on personal loans which have negative effects on the economy in general.
The Executive President of the CBO expects the Omani banking sector to continue its good performance in 2016 under the close watch from the CBO and enjoying comfortable liquidity and financial adequacy ratios.
The situation enables the banking system to meet the needs of the private sector, therefore maintaining the momentum for growth to play its leading role in the economic diversification in the Sultanate.
At the same time, the Islamic banking, which was introduced three years ago, adds more diversification and flexibility to the Omani banking sector and contributes to enhancing all qualitative and quantitative banking indicators.