Overview
The Omani Rial (OMR) is the official currency of the Sultanate of Oman, introduced in 1970 to replace the Saudi Riyal that had previously circulated. The Rial is pegged to the US dollar at a fixed exchange rate of 1 OMR to 2.6008 USD, making it one of the highest-valued currency units in the world. The fixed peg provides exchange rate stability that facilitates international trade and investment, reducing currency risk for businesses and investors operating in or with Oman. The Central Bank of Oman manages the currency peg through its foreign exchange reserves and monetary policy operations, ensuring sufficient dollar liquidity to maintain the fixed rate.
Key Facts
- Official currency of the Sultanate of Oman since 1970
- Fixed peg to the US dollar at 1 OMR equals 2.6008 USD
- One of the highest-valued currency units globally
- Subdivided into 1,000 baisa
- Managed by the Central Bank of Oman
- Currency stability supported by foreign exchange reserves
- Banknotes feature Omani heritage, landmarks, and the national emblem
Significance for Vision 2040
The Omani Rial’s stability and its dollar peg are foundational to the investment climate that Vision 2040 seeks to create. Exchange rate predictability reduces a major source of risk for foreign investors considering long-term commitments in Oman, whether in industrial projects, real estate, or financial assets. The strong currency also supports Oman’s import-dependent economy by keeping the cost of imported goods and materials manageable. However, maintaining the dollar peg requires adequate foreign exchange reserves, which in turn depend on oil export revenues and capital inflows. Vision 2040’s economic diversification objectives, by generating non-oil foreign exchange earnings through tourism, logistics, and manufacturing exports, will strengthen the sustainability of the currency peg and reduce its vulnerability to oil price fluctuations.