Muscat – The Central Bank of Oman (CBO) on Tuesday announced the issuance of RO216mn worth of treasury bills to raise funds on behalf of the government.
A tender of the government treasury bills (issue number 131) worth RO216mn was issued this week by the central bank.
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 acts as the issue manager for the treasury bills issuance and provides the added advantage of ready liquidity through discounting and repurchase facilities (repo).
Total value of the allotted treasury bills amounted to RO216mn, for a maturity period of 28 days, from January 5, 2022 until February 2, 2022.
The average accepted price reached RO99.951 for every RO100 bill, while the minimum accepted price arrived at RO99.950, as per the CBO statement.
The average discount rate and the average yield reached 0.63972 per cent and 0.64003 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 the central bank is 0.75 per cent.
The government treasury bills in Oman 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.