Oman's central bank raises OMR63m through treasury bills

Muscat: Oman's central bank raised OMR62.81 million by way of a treasury bill. The treasury bill has a maturity period of 91days, from October 18 to January 17, 2018. The average
accepted price reached 99.711 for every OMR100 while the minimum accepted price arrived at 99.705 per OMR100. The average discount rate and the average yield reached 1.15852 per cent and 1.1619 per cent
respectively. The interest rate on the Repo operations with CBO is 1.737 per cent for the period from October 17 to October 23, while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.487% for
the same period.
Treasury Bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which help 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.
Further, Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government (MOF) may also resort to this instrument
whenever felt necessary for financing its recurrent expenditures.