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  • 11-05-23

    Central Bank of Oman Allots Treasury Bills Worth USD36.41 Million

    (MENAFN) The Central Bank of Oman recently allotted government treasury bills worth 14 million Omani rials (USD36.41 million) through two tranches. The first tranche, worth 10 million Omani rials, had a maturity of 28 days, while the second tranche, worth 4 million Omani rials, had a maturity of 91 days. The average expected price for the first tranche was 99.645 Omani rials per 100 Omani rials, with an average discount rate and yield of 4.62768 percent and 4.64417 percent, respectively. The average expected price for the second tranche was 89.755 Omani rials per 100 Omani rials, with an average discount rate and yield of 4.99368 percent and 5.05664 percent, respectively.

    Treasury bills are short-term financial instruments issued by the Ministry of Finance, providing licensed commercial banks an opportunity to invest their surplus funds. The Central Bank of Oman acts as an issuance manager for these bills and uses them to provide ready liquidity to the market. This recent allotment of treasury bills is a part of the bank's effort to maintain liquidity in the market and provide investment opportunities for commercial banks.

    In addition, the central bank raised the interest rate on repurchase operations (repo) for local banks by 25 basis points to 5.75 percent on May 4. This decision followed a similar move by the US Federal Reserve, which raised its key policy rate. The central bank stated that its monetary policy target is to sustain and maintain the fixed exchange rate, aligning with the structure and nature of the Omani economy. This policy move aims to ensure the stability of the Omani rial, mitigate capital outflow, promote certainty among investors and remove exchange rate risks.

    Overall, the Central Bank of Oman's recent allotment of treasury bills is expected to provide commercial banks with investment opportunities while maintaining liquidity in the market. Additionally, the bank's decision to raise the interest rate on repo operations is aligned with its monetary policy target to sustain and maintain the fixed exchange rate, promoting stability in the Omani economy.

    MENAFN11052023000045014228ID1106224114

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