To: All Licensed Banks operating in the Sultanate of Oman

After Compliments,

Subject: Repo Rate of CBO Standing Repurchase Facilities, Discount Rate of Treasury Bills with CBO and Buyback of CBO Certificates of Deposit.

Further to CBO Circular BM 986 dated April 30, 2005, on the captioned subject, it is specified that the basis for calculation of the Repo and discount rates for the CBO standing liquidity facilities is the cut-off rate emerging in the latest auction of the 28-day CBO CDs. Accordingly, the applicable rates shall be as follows:

1. The Repo rate that the Central Bank applies for the purchase of Government Securities (Treasury Bills and Development Bonds) and CBO Certificates of Deposit for a maximum period of 28 days shall be based on the cut-off rate emerging in the latest auction of the 28-day CBO CDs plus 100 basis points.