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(C) If the spot rate is 9.50 AED per OMR. The annual interest rates are 12% in the UAE. If these interest rates remain constant, what is the market forecast of the spot rate for the OMR in two years?. You are required to: (25 marks) i. Calculate market forecast of the spot rate for the OMR in two years (5 marks). ii. Discuss Interest rate risk of the report (20 marks). The combined activities of conventional and Islamic banks provide a comprehensive picture of financial intermediation through the banking sector in Oman. The total deposit of the Islamic banks is OMR26.3 billion. Credit to the private sector rose by 2.2 per cent to OMR23 billion. Of the total credit to the private sector, the non-financial corporate sector and the household sector (mainly under personal loans) received a share of 47.1 per cent and 44.4 per cent, respectively while the financial corporations received 5.3 per cent and other sectors the remaining 3.2 per cent. Annual interest rate in Oman is 15%. The Omani oil price averaged $47.7 per barrel during the first eight months of 2020, which is lower by 26.3 per cent over the corresponding period of last year. Moreover, the average daily oil production decreased by 1.4 per cent to 957.3 thousand barrels during this period. (C) If the spot rate is 9.50 AED per OMR. The annual interest rates are 12% in the UAE. If these interest rates remain constant, what is the market forecast of the spot rate for the OMR in two years?. You are required to: (25 marks) i. Calculate market forecast of the spot rate for the OMR in two years (5 marks). ii. Discuss Interest rate risk of the report (20 marks). The combined activities of conventional and Islamic banks provide a comprehensive picture of financial intermediation through the banking sector in Oman. The total deposit of the Islamic banks is OMR26.3 billion. Credit to the private sector rose by 2.2 per cent to OMR23 billion. Of the total credit to the private sector, the non-financial corporate sector and the household sector (mainly under personal loans) received a share of 47.1 per cent and 44.4 per cent, respectively while the financial corporations received 5.3 per cent and other sectors the remaining 3.2 per cent. Annual interest rate in Oman is 15%. The Omani oil price averaged $47.7 per barrel during the first eight months of 2020, which is lower by 26.3 per cent over the corresponding period of last year. Moreover, the average daily oil production decreased by 1.4 per cent to 957.3 thousand barrels during this period

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