Oman central bank to supply dollars to local banks
Monday, 03 November 2008
Oman's central bank said on Sunday it would provide dollar liquidity to local banks to make up for shortages caused by the global financial crisis, state news agency ONA reported.
A central bank statement carried by the agency said the plan was in response to the "current situation on world markets".The plan, being launched together with the finance ministry, includes dollar loans of one to three months by the central bank, as well as measures to make foreign exchange transactions smoother, it said.
The global financial crisis has prompted Gulf Arab states to enact a slew of policy responses to combat tight liquidity conditions in markets and sagging investor confidence.Measures in regional heavyweight Saudi Arabia included the central bank pouring $3 billion in long-term deposits into the banking system, its first direct injection of US dollars in a decade. (Reuters)
