CBO raised 177 million Omani Rials through Treasury Bills
By issuing Treasury bills on Wednesday, Oman’s Central Bank raised OMR177 million. A 91-day maturity period applies to the treasury bills, from February 23 until May 25, 2022. OMR99.822 was the average accepted price per OMR100, and OMR99.820 was the minimum accepted price per OMR100. The average discount rate and average yield were 0.71461 percent and 0.71589 percent, respectively.
Licensed commercial banks can invest surplus funds in Treasury bills, which are short-term and highly secure financial instruments issued by the Ministry of Finance. In addition to acting as the Issue Manager, the Central Bank of Oman provides the convenience of ready liquidity through discounting and repurchase facilities (Repo). Repo operations with CBO have an interest rate of 0.5 percent, while Treasury Bills Discounting Facility operations with CBO have an interest rate of 0.75 percent.
Additionally, treasury bills create a benchmark yield curve for short-term interest rates, promoting the local money market. Also, the government can use this instrument whenever deemed necessary for financing recurrent expenditures.