Muscat: Oman’s central bank raised OMR25 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 91 days, from January 2 until April 3, 2019.
The average accepted price reached 99.405 for every OMR100, and the minimum accepted price arrived at 99.405 per OMR100. Whereas the average discount rate and the average yield reached 2.38654 per cent and 2.40082 per cent, respectively.
The interest rate on the Repo operations with CBO is 3.003 per cent for the period January 1, 2019 to January 7, 2019 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.753 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.