Muscat: Oman’s central bank raised OMR58 million by way of allotting treasury bills on Tuesday. The treasury bills are for a maturity period of 91 days, from Wednesday until October 31, 2018.
The average accepted price reached 99.481 for every OMR100, and the minimum accepted price arrived at 99.420 per OMR100. Whereas the average discount rate and the average yield reached 2.08364 per cent and 2.09458 per cent, respectively.
The interest rate on the Repo operations with CBO is 2.582 per cent for the period from July 31, 2018 to August 6, 2018 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.332 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. Also, the Government (MOF) may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.