To: All Licensed Banks operating in the Sultanate of Oman

Subject: Swap Facility

With a view to assisting banks in ensuring liquidity in Omani Rial, the Central Bank of Oman operates Swap Facility for buying US dollar spot against selling of the same forward. In this respect this Master Circular consolidates the currently applicable instructions and replaces all the preceding Circulars/Instructions on the Swap Facility.

1. Limit

   Swap limits for individual licensed banks shall be advised separately and revised whenever necessary.

2. Tenor

   The swap operations shall be for duration of overnight to the maximum of one month.

3. Value Dates

   Swap operations can be carried for same day value as well as spot value dates.

4. Criteria and Methodology for computing the Swap Rate

   • a. The U.S. Dollar/Omani Rial exchange rate for the computation will be the mid-rate between bid and offer rates as per Central Bank of Oman quotations, i.e. 384.5 Baizas for one U.S. Dollar.

     b. The applicable domestic benchmark rate will be the cut-off rate emerging in the latest auction of the 28-day Central Bank of Oman Certificates of Deposit.