Muscat: Oman’s central bank raised OMR55 million by way of allotting treasury bills on Tuesday.
The treasury bills are for a maturity period of 91 days, from Wednesday until October 21, 2020.
The average accepted price reached 99.814 for every OMR100 while the minimum accepted price arrived at 99.800 per OMR100. The average discount rate and the average yield reached 0.74459 per cent and 0.74598 per cent, respectively.
Note that 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.
Treasury bills are short-term highly secured financial instruments issued by the Central Bank of Oman on behalf of the government, which help 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.