It might not be one of the world’s most used or have the biggest reputation, but the Omani rial is one of the leading currencies in terms of its strength.
According to the latest information available, the currency ranks third in the world’s list of the top 10 strongest, with it behind the Kuwaiti dinar and the Bahraini dinar. Interestingly, the Middle East accounts for the top four, with the Jordanian dinar just behind Oman’s domestic monetary value.
Why is the Omani rial so strong?
Given the lack of use of the Omani rial outside of Oman, it may be a little harder to understand why the currency has managed to achieve its ranking as one of the strongest. As of recent currency conversion rates, 1 Omani rial was buying 2.60 US dollars. On the flip side, this converted as 1 US dollar at a rate of 0.38 Omani rials.
However, it might be a little easier to get your head around it when you realize that it is pegged to the US dollar. The term ‘pegged’ means that the rate of the currency is fixed to an agreed rate to the relative value of the other currency. As it has fewer competitors like other currencies do on the exchange market due to a ‘floating’ status that many of the world’s money has, it can remain strong and be more attractive to those who want to use it.
Does this make the Omani rial an attractive currency to use?
Exchange rates and currency conversions can be difficult to understand. Obviously, the stronger the currency is, the better it is for those who deal with it. However, on the flip side, it can be highly disadvantageous for those who are seeking to buy goods/services in another currency as they are likely to find it more expensive due to the rate of exchange.
Residents in Oman will find that they are able to get things cheaper as they go abroad, as they are able to get more for their money. They can use their currency to purchase goods when in foreign lands for a smaller fee. They may even find that Omani rials online casinos can offer them more for their money when they want to play their favorite games, too.
It can also be very good for businesses that export products out of the country. Oman is known to be a major exporter of oil and gas, much like many of its neighbours. As they have a strong currency, they can benefit when selling. However, it can potentially cause issues with destinations that use other currencies. This is because it will be more expensive for them, which could make them seek alternative options that are available at a cheaper rate.
Will the Omani rial always remain strong?
The Omani rial has managed to remain a relatively stable currency in terms of its value throughout its history, as there have been low inflation rates, a consistent exchange rate, and a low level of country debt.
The Central Bank of Oman has been influential in maintaining the value of its currency steadily, as they have implemented various policies that help to promote its economic growth while keeping inflation and debt levels as low as possible.
With this in mind, the Omani rial should remain relatively strong as long as the US dollar continues to perform and does not completely crash.