New Delhi: Prime Minister Narendra Modi is in Oman today, marking the final leg of his three-nation tour. The Gulf nation holds special significance for India, as nearly 781,000 Indians live and work there. Beyond strategic and economic ties, Oman often draws global attention for another reason — its currency, the Omani Rial, which is considered one of the strongest in the world, even stronger than the US dollar.
Currently, 1 Omani Rial is valued at around ₹235, while it is equivalent to about 2.60 US dollars. Very few currencies globally trade at a higher value than the dollar, placing the Omani Rial in an elite group alongside the Kuwaiti Dinar, Bahraini Dinar, Jordanian Dinar, British Pound, Swiss Franc and the Euro.
Why Is the Omani Rial So Strong?
Several structural and economic factors contribute to the strength and stability of Oman’s currency:
1. Energy Wealth:
Oman has substantial reserves of oil and natural gas, which form the backbone of its economy. Strong energy exports ensure steady foreign exchange inflows, supporting the value of the Rial.
2. Economic Stability:
The country has maintained a relatively stable macroeconomic environment, with disciplined fiscal policies and controlled inflation. This stability boosts investor confidence in the currency.
3. Strong Foreign Exchange Reserves:
Oman holds significant foreign currency reserves, enabling its central bank to defend the Rial during global economic volatility.
4. Low Population, High Income:
With a population of around 5.5 million spread across 309,500 square kilometers, Oman enjoys high per capita income. A smaller population combined with steady national earnings helps sustain a strong currency.
5. Currency Peg to the US Dollar:
The Omani Rial is pegged to the US dollar at a fixed rate, which provides predictability and shields it from sharp fluctuations seen in many emerging market currencies.
Contrast With the Indian Rupee
While the Omani Rial remains firm, the Indian Rupee has faced pressure in global markets. This year, the Rupee has depreciated by around 6% against the US dollar, making it one of the weaker-performing currencies globally, after the Turkish Lira and Argentine Peso.
India–Oman Trade Relations
Economic ties between India and Oman remain strong. India imports crude oil, LNG, urea, petroleum coke, chemicals, gypsum and aluminum from Oman — all crucial for India’s power, fertilizer and industrial sectors.
In return, India exports a wide range of products to Oman, including mineral fuels, chemicals, precious metals, iron and steel, grains, ships and boats, electrical machinery, boilers, tea, coffee, spices, textiles and food items.
A Currency That Reflects Economic Strength
The strength of the Omani Rial is not accidental. It reflects Oman’s energy resources, prudent economic management, high per capita income and strong trade fundamentals. In a world where many currencies struggle against the US dollar, Oman stands out as a rare example of sustained monetary strength.