Oman Uses Monetary Policy Plans to Cushion the Impact of COVID-19

March 20, 2020

The Central Bank of Oman (CBO) unveiled an OMR 8 billion incentive package to strengthen the economy against the impacts of COVID-19.

In a circular issued by the CBO banks were instructed to reduce their Capital Conservation Buffers (CCB) by 50% to 1.25%, and increase their Lending ratio by 5% to 92.5%.

The CBO also announced a reduction to its repo rate by 75 basis points (bps) and an increase in the tenure of repo operations up to a maximum of three months. Furthermore, reductions in the interest rate on discounting of Government Treasury Bills by 100 bps to 1%, as well as a 50 bps reduction of the interest rate on Foreign Currency SWAP operations, were stated.