The Central Bank of Oman’s monetary policy target is to sustain and maintain its fixed exchange rate. This policy is aligned with the structure and nature of the Omani economy. There are a number of advantages for the Sultanate that are derived from this policy among which are the following:
- Stability of the Omani Rial
- Mitigation of capital outflow
- Promoting certainty among investors by removing exchange rate risk
Accordingly, and after the US Fed’s recent announcement to hold off on its interest rate hike, the Central Bank of Oman (CBO) decided to keep its repo rate for local banks fixed at 6.00 percent. The repo rate is the policy rate that allows commercial banks to acquire short term liquidity from the Central Bank as the lender of last resort. https://tinyurl.com/rcp2vamz
Source: IBP