CBO issues treasury bills worth OMR 55 million

Muscat: The Central Bank of Oman (CBO) raised 55 million OMR by allocating treasury bills on Tuesday.

Treasury bills have a maturity of 91 days, from August 10, 2022 to November 9, 2022.

The average price accepted reached 99,300 OMR per 100 OMR, and the minimum price accepted reached 99,290 OMR per 100 OMR. The average discount rate and the average return reached 2.80769% and 2.82749% respectively.

Treasury bills are highly secured short-term financial instruments issued by the Ministry of Finance, and they offer licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) acts as issue manager and offers the added benefit of immediate liquidity through discounting and repurchase (Repo) facilities.

It can be noted that the interest rate on the Repo transactions with CBO is 3.00% while the discount rate on the Treasury bill discount facility with CBO is 3.50%.

Additionally, treasury bills favor the local money market by creating a benchmark yield curve for short-term interest rates. In addition, the government can also resort to this instrument whenever it deems it necessary to finance its current expenditure.

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