The Central Bank of Oman (CBO) has been quoted by official sources as saying that its foreign-exchange reserves in 2021 have reached $18 billion.
The number came to light as the bank saw its fourth Board of Governors meeting on Monday, December 27.
At the outset of the meeting, the Board reviewed a report elaborating on the state of CBO reserves and the performance of its foreign investments.
The board is said to have expressed satisfaction with the state of the CBO 2021 FX reserves.
It opined that 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, said the official sources.
The board also reportedly 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, it noted.
The Board also commended the concluding report on the credit rating of the sultanate prepared by Fitch, and applauded the efforts made in this regard by the competent authorities.
In the report, the rating agency revised its future outlook of Oman to stable, while confirming the credit rating at BB-.
The revision is said to have been influenced by the policies and timely measures taken by the Oman to improve its fiscal and economic conditions.
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.
It urged the banking sector to enhance its contribution to promoting development, and supporting and facilitating lending to the private sector in light of stimulating economic indicators and the recovery witnessed by the national economy.
The board also reviewed the progress on the implementation of CBO’s strategic initiatives for 2021, and commended the steps taken in this regard.
Discussions also touched on the 2022 budget proposals of CBO, Oman Center for Credit and Financial Information, aka Mala’a, and the Bank Deposit Insurance Scheme (BDIS).
The board also reviewed several other topics listed as part of its meeting agenda and took appropriate decisions accordingly.