CBO issues treasury bills worth OMR36 million

Muscat: Oman’s central bank raised OMR36 million by way of allotting treasury bills on Tuesday. The treasury bills are for a maturity period of 28 days, from Wednesday until March 11, 2020.
The average accepted price reached 99.871 for every OMR100, and the minimum accepted price arrived at 99.870 per OMR100. Whereas the average discount rate and the average yield reached 1.68559 per cent and 1.68777 per cent, respectively.
The interest rate on the Repo operations with CBO is 2.158 per cent for the period from February 11, 2020, to February 17, 2020, while the discount rate on the Treasury Bills Discounting Facility with CBO is 2.908 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 the added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank.
Furthermore, the 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.