Middle East & Central Asia News
LAST UPDATE: June 11, 2025
IMF Expert Mission Commends CBO’s Transparency Practices
Oman News Agency
An IMF expert mission praised the Central Bank of Oman for strong transparency practices based on the IMF’s 2020 Central Bank Transparency Code, noting the CBO’s robust governance, disclosure of monetary policy, and stakeholder communication.
Insight
The recognition underlines Oman’s leading role in financial transparency among GCC states—it’s the first in the region and second in the Arab world to undergo this voluntary assessment. The CBO’s clear legal framework, regular public updates (via bulletins and social media), and enhanced disclosure of emergency liquidity tools signal growing institutional maturity. Stakeholder dialogue and an improved AML/CFT framework further highlight its evolving credibility. The mission also encouraged continued enhancements—such as publishing risk management frameworks and audit structures—supported by Vision 2040 goals.
Azerbaijan central bank holds refinancing rate at 7.25%
The Central Bank of Azerbaijan held its key refinancing rate at 7.25%, marking the ninth consecutive meeting without change.
Insight
Steady policy signals the bank’s intent to keep inflation and currency stability in check amid modest economic growth. This consistency bolsters investor predictability, while the high real rate supports manat resilience. Stability-focused policy reflects caution in deploying monetary tools, but risks limiting support for credit growth and tighter financial conditions. Upcoming data will determine whether rate adjustments are needed ahead of the next July meeting.
Iran threatens U.S. bases in region if military conflict arises
Iran’s Defense Minister warned that failure of nuclear talks could prompt strikes on U.S. bases in the region.
Insight
This escalation heightens regional tensions ahead of the sixth round of negotiations, demonstrating Iran’s readiness for military retaliation. It increases pressure on U.S. negotiators to resume diplomacy, highlighting divergent timing and statements between Washington and Tehran. The missile test with a two-ton warhead underscores Iran’s upgraded military capabilities. Risk of miscalculation remains high, underlining the urgency of diplomatic progress in Oman.
