The International Monetary Fund (IMF) has released a report assessing the transparency of the Central Bank of Oman (CBO) based on the IMF’s best practices for central bank transparency (CBT).
The report indicated that this voluntary assessment aimed to review CBO’s transparency and disclosure practices, focusing on five key areas set forth by the IMF: governance; transparency of policies, operations, outcomes, and official relations of central banks. This assessment is intended to enhance CBO’s independence and its relationships with relevant stakeholders, facilitating information sharing and intellectual exchange with counterparts.
The IMF report concluded that CBO places significant emphasis on transparency in its practices, aligning with international best practices, as reported by Oman News Agency (ONA). This demonstrates its commitment to strengthening its role as a vital public institution in the country through a robust transparency framework.
The Sultanate of Oman is the first nation among the Gulf Cooperation Council (GCC) States to undergo this voluntary assessment and the second in the Arab world. This reflects CBO’s dedication to advancing to the highest international standards and practices.
Strong governance
During its field visit, the IMF engaged in extensive meetings with stakeholders from CBO and relevant government, private, and civil society organizations to evaluate its transparency practices and governance frameworks. This ensures constructive dialogue with stakeholders to achieve more effective outcomes in monetary and banking policies.
The report’s key findings highlight strong governance and a sound legal framework. The CBO possesses a robust legal framework for internal governance, with a clear legal structure and broad powers that enhance decision-making and accountability.
The report also emphasizes monetary policy transparency, as the CBO ensures clarity in its monetary policy and maintains the stability of the financial system through cooperation with other financial institutions in the country, along with regular bulletins and periodicals for effective communication.
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Ongoing modernization
Additionally, the report highlights effective financial stability tools, as IMF experts found that the CBO is focusing on enhancing tools related to the Emergency Liquidity Assistance (ELA) and macro-financial stability, reflecting its ongoing efforts to improve the transparency of financial system stability management in the Sultanate of Oman.
Furthermore, the report underscores the commitment to stakeholder communication, with the CBO working to improve its engagement with the public, ensuring that key policy decisions are accessible and understandable, including through its website and social media channels.
The CBO’s efforts to strengthen its Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) framework were also praised, and the review encouraged continued enhancement of transparency in its supervisory and oversight practices in this area.
The IMF issued the “Central Bank Transparency Code” in 2020, reflecting the increasing responsibilities and significant demand for central banks to clarify the nature, purpose, and manner of their activities. This allows for a deeper public understanding of these roles in optimally serving their interests, consistent with current mandates, enhancing central bank independence, and improving the effectiveness of monetary and banking policies.
Accordingly, the CBO has taken into consideration the recommendations presented by the IMF team and is committed to continually enhancing transparency in alignment with the objectives of Oman Vision 2040 and international best practices, while considering the local context and national legal framework. The mission offered an opportunity for self-assessment, in conjunction with CBO’s ongoing efforts to modernize its legal and regulatory frameworks. The CBO will develop a plan to implement the recommendations and findings contained in the IMF report, which will contribute to ongoing improvements in the transparency of its operations, practices, and policies to ensure sustainable economic growth.
