Central Bank of Oman raises OMR41m from treasury bills

Muscat: Oman raised OMR41 million by way of treasury bills this week. The treasury bills are with a maturity period of 28 days, from July 19 to August 16, 2017. The average accepted price reached 99.924 for every OMR100, and the minimum accepted price arrived at 99.920 per OMR100. Whereas the average discount rate and the average yield reached 0.98881 per cent and 0.98956 per cent, respectively.
The interest rate on the Repo operations with CBO is 1.728 per cent for the period from July 18, 2017 to July 24, 2017, while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.478 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. Further, 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.