IMF expert mission commends CBO's transparency practices

Times of Oman

a day ago

Muscat-- 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.