Money supply in Oman fell 1.2 per cent month-on-month at the end of May, the first decline this year after a 0.6 per cent rise in April, data from the Gulf country's central bank showed on Monday.

Money supply measured as M2 stood at RO8.225 billion ($21.36 billion) at the end of May, compared to RO8.325 billion in April, the official figures showed.

M2 in May rose 6.6 per cent compared to the same period last year. M2, also an indicator of future inflation, had started to pick up speed this year, after cooling down from double-digit growth rates seen for most of first seven months of 2009.

The central bank's net foreign assets stood at RO4.996 billion at the end of May, up 14.4 per cent from May 2009, the statistics showed.

Oman's commercial banks extended credit worth RO10.054 billion in May 2010, up from RO9.524 billion a year earlier.-Reuters