Oman’s central bank raises OMR48mn through treasury bills

The Central Bank of Oman (CBO) successfully raised OMR48 million by allotting treasury bills on Monday. This move aims to manage liquidity and provide investment opportunities within the Omani financial market.

The total amount raised was divided into two tranches. OMR22 million was allotted for a maturity period of 91 days. For this issuance, the average accepted price was OMR99.050 for every OMR100, with the minimum accepted price at the same level. The average discount rate and yield for this tranche stood at 3.80953% and 3.84606%, respectively.

Additionally, OMR26 million was raised through treasury bills with a maturity period of 182 days. The average accepted price for this longer-term issuance was OMR98.069 per OMR100, with the minimum accepted price at OMR98.065 per OMR100. The average discount rate and yield for the 182-day bills were 3.87195% and 3.94818%, respectively.

Treasury bills are recognized as short-term, highly secured financial instruments. They are issued by the Ministry of Finance and offer licensed commercial banks a platform to invest their surplus funds. The CBO plays a crucial role as the Issue Manager, providing liquidity advantages through discounting and repurchase facilities (Repo). The current interest rate on Repo operations with the CBO is 4.25%, while the discount rate on the Treasury Bills Discounting Facility is 4.75%.

Beyond providing investment avenues, these treasury bills are instrumental in promoting the local money market by establishing a benchmark yield curve for short-term interest rates. The government may also utilize this instrument to finance its recurrent expenditures when deemed necessary.