Oman's central bank raises OMR47m from treasury bills

Muscat: Oman’s central bank has raised OMR47.27 million by way of issuing government treasury bills.
The total value of the allotted treasury bills amounted to OMR47.27 million, for a maturity period of 91 days, from May 31 to August 30, 2017.
The average accepted price reached 99.729 for every OMR100 while the minimum accepted price arrived at 99.725 per OMR100. The average discount rate and the average yield reached 1.08654 per cent and 1.08950 per cent, respectively.
The interest rate on the Repo operations with Central Bank of Oman (CBO) is 1.545 per cent for the period from May 30, 2017 to June 5, 2017 while the discount rate on the treasury bills discounting facility with CBO is 2.295 per cent for the same period.
The treasury bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which helps the licensed commercial banks to gainfully invest their surplus funds, with added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank.
Furthermore, the treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.