To: All Licensed Banks Operating in the Sultanate of Oman

After Compliments,

Sub: Reserve Against Deposits

1. Attention of banks is invited to Circular BM 1031 dated 31 December 2007.

2. In the light of continued and growing ease of bank credit, money supply and liquidity, Central Bank of Oman has decided to raise reserve ratio from 5% to 8%. Accordingly, licensed banks shall maintain reserve at 8% of deposit-liabilities commencing from the computation period starting from 1 August 2008.

3. All other instructions as regards reserve maintenance remain the same (clearing account balances alone shall constitute reserve asset and base of deposit-liabilities shall cover all resident and non-resident deposits, including margins accounts and excluding local inter-bank deposits).

4. Licensed banks shall comply accordingly.

Best regards,