The Board of Governors of the Central Bank of Oman (CBO) reviewed a report elaborating on the state of reserves and the performance of its foreign investments.

The Board expressed its profound satisfaction with the state of CBO 2021 FX reserves, which have reached an impressive level of US$18 billion.

The Board opined that the prominent growth achieved in the FX reserve numbers has been supported by stable cash flows witnessed throughout the year in view of the rise in oil prices and recovery of the global economy from the effects of the COVID-19 pandemic.

Likewise, the Board observed that the total demand for foreign currency in the local market has remained at reasonably comfortable and satisfactory levels, and has brought the FX reserves of CBO in equation with the value of nine months of country’s imports.

The FX reserves position ensures a stable purchasing value for the Omani riyal and conforms to the recommendations of international organizations, the Board noted.

The Board also commended the concluding report on the credit rating of the Sultanate of Oman prepared by Fitch Agency and applauded the efforts made in this regard by the competent authorities.

In the report, Fitch Agency revised its future outlook of Oman to stable, while confirming the credit rating at “BB-” mostly in view of the prudent policies and timely measures taken by the government to improve the fiscal and economic conditions of the Sultanate of Oman.

The Board also examined the progress made with regard to the implementation of the monetary policy enhancement project, in addition to reviewing a report on the financial safety indicators of banks.

They then urged the banking sector to enhance its contribution to promoting development, supporting and facilitating lending to the private sector in light of stimulating economic indicators and the recovery witnessed by the national economy.

Likewise, the Board reviewed the progress on the implementation of CBO’s strategic plan initiatives for the year 2021 and commended the steps taken in this regard.

In addition, the Board also discussed the 2022 budget proposals of CBO, Oman Center for Credit and Financial Information “Mala’a” and Bank Deposit Insurance Scheme (BDIS).

It also reviewed several other topics listed as part of its meeting agenda and took appropriate decisions accordingly.