MUSCAT: The Central Bank of Oman (CBO) has introduced the Wakala money market instrument with effect from December 28, 2022, to support an effective management of liquidity by Islamic banks and Islamic banking windows in the Sultanate of Oman.
This product is part of several Islamic liquidity management instruments that the Central Bank of Oman has developed for Islamic banking entities in Oman, that shall be introduced in phases, both for absorbing excess liquidity and for providing liquidity support.
Under Wakala money market product, Islamic banking entities will place funds with the Central Bank in US Dollar for a minimum duration of one day to maximum of 3 months that shall be managed and invested by CBO in shari’a-compliant instruments.
Furthermore, to develop these liquidity management instruments, the Central Bank of Oman has worked closely with its High Shari’a Supervisory Authority (HSSA), which has reviewed and approved all the product structures and relevant contracts. ONA
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