Foreign exchange reserves are financial assets denominated in foreign currency that are held by the Central Bank of Oman. CBO main objectives in managing its foreign reserves is to safeguard the stability of the currency, support exchange rate policy and provide liquidity. The Foreign Exchange Reserve Assets Portfolio (FXRAP) is managed by officials of Investment and Treasury in compliance with Banking Law, Investment Guidelines, Board of Governors' Directive, Directives of Reserve Asset Management Committee (RAMC) and Investment Committee (IC) aiming at fulfilling the following main objectives;
The reserves are divided into three distinct segments to suit the needs:
In addition, a portion of the FXRAP may be earmarked for placement with one or more external funds mangers with the approval of the board of Governors.
Treasury Department is responsible for: Managing and maintaining the Liquidity Tranche as per the Banking Law and Investment Guidelines. The primary objective of the Liquidity Tranche is to provide and maintain sufficient funds in U.S. Dollars to meet day-to-day local market demand. The secondary objective is to achieve a reasonable rate of return. Principal activities of Treasury Department include:
Investment Department is responsible for:Managing the “Income and Bridge Tranches” component of CBO foreign currency reserve assets in a prudent way to achieve optimal mix of return and risk while fulfilling the objectives of achieving capital preservation and liquidity. The permissible investment assets are: