Thursday 25 / April / 2024
Muscat: The Central Bank of Oman (CBO) has introduced the Wakala Money Market instrument as of 28 December 2022, to support the effective management of liquidity by Islamic banks and Islamic banking windows in the Sultanate of Oman.
This product is part of several Islamic liquidity management instruments that the Central Bank of Oman has developed for Islamic banking entities in Oman, which shall be introduced in phases, both for absorbing excess liquidity and for providing liquidity support.
Under the Wakala money market product, Islamic banking entities will place funds with the Central Bank in US Dollar (USD) for a minimum duration of one day to a maximum of 3 months, which shall be managed and invested by CBO in Sharia-compliant instruments.
Furthermore, to develop these liquidity management instruments, the Central Bank of Oman has worked closely with its High Sharia Supervisory Authority (HSSA), which has reviewed and approved all the product structures and relevant contracts.
