The Central Bank of Saudi Arabia (SAMA) decided to raise the ceiling of weekly SAMA issuances from 3 billion riyals to 10 billion riyals starting today, Sunday.
According to Arabiya Net, the bank said in a statement, that this is to enhance the efficiency of banks in managing their liquidity.
SAMA bills are low-risk short-term debt instruments, issued on a reduced basis from the maturity amount, and their value is issued in multiples of one million riyals.
The Saudi Central Bank proposes permissions for several reasons, including monetary stability, control and influence on the size of the money supply and purchasing power, or to reduce the intensity of the financing of commercial banks, which is one of the monetary political tools for banks Central.
and when banks need liquidity, they sell the debt instrument to the monetary institution. This case is called the repurchase agreement. Treasury bills are sold by auction.
as the central bank in the country that issues treasury bills offers them to investors such as large financial institutions such as commercial banks, insurance companies, investment companies and other investors, and they are sold to the highest bidder The price then the lowest until the full value of the bid offered is covered.
