Oman Commits to the dollar

As with the other Gulf States, Oman remains fixed to the dollar.
With more than 70% of its exports still from Oil and gas, and with the international prices for these commodities still determined in dollars, this makes sense. Oman committed to peg
Hamood Sangour Al Zadjali, the Executive President of the Central Bank of Oman, has re-iterated that the sultanate is 'firmly committed' to maintaining its peg to the US dollar, despite repeated rumours of possible revaluations by some Gulf states, reported Reuters. Al Zadjali said the peg to the greenback provided 'the strongest source of stability' and was a key factor in attracting trade and investment.
Oman: Monday, October 01 - 2007 at 07:57

However, it is giving Oman some problems. Consumer price inflation officially is now at 6% p.a., and many people feel it is way way higher, especially if you include the horrendous rent increases lately - sometimes more than 75%. The economy is effectively over-heating badly.

Oman's inflation nears 6%
Oman's annual inflation rate reached almost 6% in July, up sizeably on the 5.6% rate recorded in June, reported Reuters citing Ministry of National Economy data. The consumer price index reached 111.6 points up from 105.3 points in the same month last year. An 11.3% increase in the cost of food, beverages and tobacco in July, coupled with an 8.5% lift in rents, have been blamed for the rise in inflation.
Oman: Sunday, September 16 - 2007 at 06:50