IMF lauds CBO for high transparency standards
Muscat – The International Monetary Fund (IMF) has 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).
Released on Tuesday, the IMR report outlines the findings of a voluntary assessment carried out to review the CBO's transparency and disclosure practices. The assessment focused on five key areas defined by the IMF: governance, transparency of policies, operations, outcomes, and official relations of central banks. The evaluation aims to enhance the CBO's independence, strengthen engagement with relevant stakeholders, and encourage knowledge-sharing and intellectual exchange with peer institutions.
The IMF concluded that the CBO attaches considerable importance to transparency in its operations, aligning its practices with international standards. This reflects the CBO's commitment to reinforcing its position as a vital public institution through a robust transparency framework.
Oman is the first country in the GCC and the second among Arab nations to undergo this voluntary review by the IMF. This underscores the CBO's dedication to achieving the highest international standards in central banking practices.
During its visit, the IMF team held extensive meetings with stakeholders from the CBO as well as representatives from government bodies, the private sector, and civil society organisations. These discussions helped assess the CBO's governance structures and transparency measures, promoting constructive dialogue to support more effective monetary and banking policy outcomes.
The report's key findings include evidence of strong governance and a sound legal framework. The CBO benefits from a clear legal structure and broad institutional powers that enhance decision-making and accountability.
The report also commended the CBO's transparency in monetary policy. The IMF report noted that the bank maintains open communication regarding its monetary policy framework and financial system stability, including regular publications and coordination with other financial institutions in Oman.
Additionally, the IMF highlighted the CBO's development of effective financial stability tools, particularly its focus on improving Emergency Liquidity Assistance (ELA) mechanisms and macro-financial stability frameworks. These efforts are contributing to greater transparency in managing financial system risks.
The report further noted the CBO's ongoing initiatives to enhance stakeholder communication. This includes making key policy decisions accessible and understandable to the public via its website and social media platforms.
Moreover, the CBO was praised for its work to strengthen its anti-money laundering and countering the financing of terrorism (AML/CFT) framework. The review encouraged the CBO to continue enhancing transparency in its supervisory and oversight responsibilities in this area.
The IMF's Central Bank Transparency Code, introduced in 2020, reflects the expanding responsibilities of central banks and the growing need for them to clarify the purpose, nature, and methods of their operations. This enhanced transparency fosters greater public understanding of central bank roles, bolsters institutional independence, and strengthens the impact of monetary and financial policies.
In response to the IMF's recommendations, the CBO has committed to further strengthening transparency in alignment with Oman Vision 2040 and global best practices, while respecting the national legal and regulatory context. The mission offered a valuable opportunity for self-assessment, complementing the CBO's ongoing efforts to modernise its legal and institutional frameworks.
The CBO will develop a detailed plan to implement the IMF's findings and recommendations. This initiative is expected to further improve the transparency of the CBO's operations, policies, and practices, ultimately contributing to sustainable economic development in the sultanate.
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a day ago
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IMF hails CBO's transparency, offers roadmap for enhancements
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a day ago
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IMF lauds CBO for high transparency standards
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