T-Bill Sales Reach MVR 30 Billion So Far This Year

Treasury bill (T-bill) sales have reached MVR 30 billion so far this year, according to data released by the Finance Ministry. T-bills worth MVR 16 billion were sold to commercial banks and MVR 13.7 billion to other financial institutions. The total amount of t-bills sold to the private sector reached MVR 100 million.

This marks an increase of nearly MVR 4 billion compared to the same period last year, when t-bills worth MVR 26 billion were sold.

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According to data released by the Finance Ministry, the amount of t-bills issued for a period of one month stood at MVR 1.4 billion, while t-bills sold for a period of three months stood at MVR 2.2 billion. In addition, the amount of t-bills issued for six months stood at MVR 3.5 billion. The amount of t-bills issued for one year was MVR 23 billion. A further MVR 1.2 billion was sold as an Islamic instrument.

As of Thursday, the total amount of t-bills, bonds, and sukuks sold by the state was MVR 66 billion, with a total of MVR 57 billion in transactions carried out within the country. The central bank, Maldives Monetary Authority, offers four types of t-bills with repayment periods of 28 days, 98 days, 182 days, and 364 days. The longer the repayment period, the higher the interest rate.

To maintain the government’s cash flow, t-bills are typically sold to pension funds, banks, state-owned companies, and private companies. Some of these include the Commercial Bank of Maldives and companies owned by Universal that invested in government-sold t-bills.

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