Oman’s central bank raises OMR32m from treasury bills

Muscat: Oman’s central bank raised OMR32.27 million by way of treasury bills this week.
The treasury bills have a maturity period of 91 days, from August 30 until November 29, 2017.
The average accepted price reached 99.705 for every OMR100 and the minimum accepted price arrived at 99.705 per OMR100. The average discount rate and the average yield reached 1.18133 per cent and 1.18482 per cent, respectively.
The interest rate on the Repo operations with CBO is 1.736 per cent for the period from August to September 4 , while the discount rate on the treasury bills discounting facility with CBO is 2.486 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.
Besides, 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.