Oman’s issues treasury bills worth OMR50.15mn

Muscat: Oman’s central bank raised OMR50.15 million by way of allotting Treasury Bills on Monday. The bills are for a maturity period of 91 days. The average accepted price reached OMR98.953 for every OMR100, and the minimum accepted price arrived at OMR98.940 per OMR100. The average discount rate and the average yield reached 4.19856% and 4.24298%, respectively.

Treasury Bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) acts as the Issue Manager and provides theadded advantage of ready liquidity through discounting and repurchase facilities (Repo).

It may be noted that the interest rate on the Repo operations with CBO is 5.00% while the discount rate on the Treasury Bills Discounting Facility with CBO is 5.50%.

Furthermore, Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.