IMF Expert Mission Commends CBO’s Transparency
Practices

Muscat, 10 Jun (ONA)
— The International Monetary Fund (IMF) has issued and published a report on
the transparency of the Central Bank of Oman (CBO) based on the IMF’s best
practices for central bank transparency (CBT).

The report issued
today said that this voluntary assessment was conducted to review the
transparency and disclosure practices of CBO, focusing on five key areas, as
issued by the IMF: governance; transparency of policies, operations, outcomes and
official relations of central banks. This assessment serves to enhance CBO’s
independence and its relations with relevant stakeholders and facilitates
information sharing and intellectual exchange with counterparts.

The IMF report
concluded that CBO places great importance on transparency in its practices, in
line with international best practices. This reflects its commitment to
strengthening its role as a critical public institution in the country through
a robust transparency framework.

The Sultanate of Oman
is the first country among the Gulf Cooperation Council (GCC) States to undergo
this voluntary assessment and the second among Arab countries. This reflects CBO’s
commitment to advancing to the highest international standards and practices.

During its field
visit, the IMF held extensive meetings with stakeholders from CBO and relevant
government, private, and civil society organizations to assess 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 most
prominent findings indicate strong governance and a sound legal framework.
The CBO has a strong legal framework for internal governance, with a clear
legal structure and broad powers, which enhances decision-making and
accountability.

The report also highlights
the monetary policy transparency as the CBO ensures transparency in
monetary policy and the stability of the financial system through cooperation
with other financial institutions in the country, as well as through the
issuance of regular bulletins and periodicals to ensure effective
communication.

Additionally, the
report spotlights effective financial stability tools as IMF experts
found that CBO is focusing on enhancing tools related to the Emergency
Liquidity Response (ELA) and macro-financial stability, reflecting its ongoing
efforts to improve the transparency of financial system stability management in
the Sultanate of Oman.

Further, the report underlines
commitment to stakeholder communication as the CBO is working to enhance
its communication with the public, ensuring that key policy decisions are
accessible and understandable, including through its website and social media
channels.

In addition, the CBO’s
efforts to strengthen its AML/CFT framework were commended, and the review
encouraged it to continue enhancing transparency in its supervisory and
oversight practices in this area.

It is noteworthy that
the IMF issued the “Central Bank Transparency Code” in 2020,
reflecting the growing responsibilities and significant expansion in the
requirement for central banks to clarify the nature, purpose, and manner of
their activities. This allows for a deeper public understanding of the role of
these activities in optimally serving their interests, consistent with current
mandates, enhancing central bank independence, and enhancing the impact of
monetary and banking policies.

Accordingly, the CBO
has taken into account the recommendations presented by the IMF team and is
committed to continuing to enhance transparency in line with the objectives of
Oman Vision 2040 and international best practices, while considering the local
context and national legal framework. The mission provided an opportunity for
self-assessment, in conjunction with the 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.

— Ends/Khalid