Tuesday, 14 October 2008 |
updated 1 minute ago
20:30 UAE time

YOUR DIRECTORY /

Oman tightens lending restrictions

by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 10 June 2008

BANK HIKE: Oman's central bank has raised the reserve requirement for the commercial banking sector to 8 percent. (Getty Images)

The governing board of Oman's central bank raised the reserve requirement for the commercial banking sector to 8 percent from 5 percent, Oman's state news agency said on Monday.

The rise is the third in almost a year. Oman tightened bank lending restrictions in December to prevent lower borrowing costs from fuelling inflation.

Inflation in Oman accelerated to 11.56 percent in March, its highest level in 18 years, government data released in May showed.

Dollar pegs force central banks in the world's biggest oil-exporting region to track U.S. monetary policy to maintain the relative value of their currencies.

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Kuwait, one of five Gulf states preparing for monetary union as early as 2010, severed its peg to the dollar last year to contain inflation. (Reuters)

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