Starting today, the Central Bank of Oman increased the interest rate on repurchase operations for local banks by the same amount approved by the US Federal Reserve, which is 25 basis points, to 5.75%.
The Central Bank of Oman stated in a statement that this comes in line with the bank’s monetary policy, which aims to maintain the fixed exchange rate system for the Omani riyal, and with the structure and nature of the Omani economy. Monetary policy also includes a number of advantages for the Sultanate, including but not limited to the stability of the Omani riyal, limiting capital migration abroad and enhancing confidence among investors by removing the risk of exchange rate fluctuations.
