Muscat, Oman—The government of Oman issued Treasury Bills worth Omani Riyal 40 million (US$103 million) for a period of 91 days.
The average accepted price reached RO 99.419 for every RO 100, and the minimum accepted price arrived at RO 99.270 per RO 100.
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 the added advantage of ready liquidity through discounting and repurchase facilities (Repo).
The interest rate on the Repo operations with CBO is 3 percent while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.50 percent.
According to a ONA news report, 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.