The Central Bank of Oman was established on the basis of a Royal Decree promulgated in December 1974. The establishment of the institution was a natural outcome of the evolution of the monetary system in the Sultanate of Oman.
The bank commenced its operations on April 1st 1975 in accordance with the provisions mentioned in the Banking Law of 1974. The bank is committed to ensuring monetary and financial stability in the country and fostering a sound and progressive financial sector. The bank has vigorously worked towards evolving a regulatory framework with the objective of promoting a sound banking system. In the pursuance of its objectives the bank performs following activities:
- Acting as the depository agency for the Government of the Sultanate of Oman
- Managing the loans on behalf of the Government
- Accepting deposits from the country’s commercial banks
- Advancing credit to local banks and engaging in investment activities
- Determining the discount and rediscount rates
- Issuing and controlling the circulation of the national currency
- Holding and managing the foreign exchange of the country
- Acting as an advisor to the government on financial, monetary and economic matters
- Providing clearing house services to all member banks
The general direction and supervision of the bank is in the hands of a Board of Governors. The board has the authority to perform all acts required for the effective management and supervision of the central bank.