What monetary regime is maintained by the Central Bank of Oman (CBO) to preserve the stability of the Omani Rial (OMR)?

Answer and explanation

Correct answer: D. A fixed peg to the United States Dollar at approximately 1 OMR = 2.60 USD

  1. Step 1: Since 1973, the Omani Rial has maintained a fixed peg to the US Dollar.
  2. Step 2: In 1986, the peg was set at 1 OMR = 2.6008 USD (or 1 USD = 0.3845 OMR).
  3. Step 3: The fixed peg eliminates exchange risk for Oman's hydrocarbon exports, anchors price stability, and provides monetary credibility.
Answer
A fixed peg to the United States Dollar at approximately 1 OMR = 2.60 USD.
Why not the others: The Rial does not float freely; it is not pegged directly to crude oil spot prices or European currencies.

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