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RIYADH: The Effective Exchange Rate Index of the Omani rial reached 118.4 points in the first half of 2024, up 2.7 percent compared to the same period last year, according to new data. 

The EER Index is a measure used to evaluate the value of a country’s currency relative to a basket of other currencies. It provides a broader view of performance compared to a single exchange rate. The index typically includes a weighted average of multiple rates, reflecting a country’s overall trade competitiveness in the global market.

Preliminary statistics issued by the National Center for Statistics and Information indicated that local liquidity in Oman reached 24 billion rials in the first half of the year, reflecting a 12 percent surge compared to the same period a year prior, the Oman News Agency reported. 

The growth in liquidity suggests vibrant and expanding economic activity, with more funds circulating within the economy.

This comes as Oman’s public revenue saw an annual decline of 2 percent year on year in the second quarter of 2024, reaching $16.1 billion, the country’s news agency disclosed in August. 

Oman’s economic landscape is heavily influenced by its reliance on oil and gas revenues, making it vulnerable to global price fluctuations. 

The government has been actively working to diversify the economy and reduce dependence on hydrocarbons as part of its Vision 2040 plan. 

This strategic undertaking aims to foster economic diversification, encourage private sector growth, and enhance social welfare programs to ensure long-term resilience.

The NCSI data further revealed a 3.3 percent decrease in total issued currency, amounting to 1 billion rials by the end of June, compared to the same period the previous year.

Conversely, the narrow money supply, or M1—which includes total cash outside the banking system, as well as current accounts and demand deposits in local currency—increased by 16.3 percent during the same timeframe, reaching 6 billion rials compared to the same period in 2023.

Additionally, the Central Bank of Oman's total foreign assets rose by 6.2 percent in the first six months of the year, totaling 6 billion rials by the end of June 2024, up from the end of June 2023.

Total loans and financing at commercial banks and Islamic windows reached 31 billion rials by the end of June, reflecting a 3.8 percent increase compared to the same period a year ago.

Finally, the average interest rate on total loans rose to 5.581 percent by the end of June, marking a 2.7 percent increase from the corresponding period in 2023.