Muscat: Oman’s central bank raised OMR56 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 28 days, from Wednesday until July 29, 2020.
The average accepted price reached 99.956 for every OMR100, and the minimum accepted price arrived at 99.950 per OMR100. Whereas, the average discount rate and the average yield reached 0.56915 per cent and 0.56941 per cent, respectively.
The interest rate on the Repo operations with CBO is 0.5 per cent, while the discount rate on the Treasury Bills Discounting Facility with CBO is 1 per cent.
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, 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.