Oman Secures RO 19 Million in Short-Term Funding Through Treasury Bills

Oman, 4 June, 2024 : The Central Bank of Oman (CBO) concluded a successful auction of government treasury bills, raising a total of RO 19.06 million. These short-term, highly secure financial instruments offer licensed commercial banks a safe avenue to invest surplus funds while contributing to Oman's financial landscape.

The auction focused on bills with a 91-day maturity period. Banks participating in the auction displayed strong demand, with the total value allotted matching the issuance amount. The average price paid for the bills was RO 98.73 per RO 100, translating to a discount rate of 5.10856% and a yield of 5.17447%.

This issuance benefits both banks and the government. Banks gain a secure investment option with competitive returns. The CBO, acting as the Issue Manager, promotes the development of Oman's money market by establishing a benchmark yield curve for short-term interest rates. Additionally, these treasury bills provide the government with a flexible tool for managing its short-term funding needs, potentially financing recurring expenditures.

The CBO further enhances the attractiveness of these bills by offering repurchase (repo) and discounting facilities with attractive interest rates. The current repo rate sits at 6.00%, while the discount rate for the Treasury Bills Discounting Facility is 6.50%.

This successful auction demonstrates the continued confidence of Oman's financial sector in the government's economic management. By utilizing treasury bills, the CBO effectively contributes to a robust and dynamic financial system within the country.

Source : www.omannews.gov.om