The Qatar Central Bank (QCB) is strengthening the treasury bills (T-bills) sector by launching shorter tenure treasury bills as well as enhancing the present size of T-bills, a move that ought to enhance international investment appeal.
"The QCB will introduce certain enhancements in the issuance of T-bills starting from October 2022," the central bank said in a tweet.
These enhancements include increasing the size of issuance, issuing shorter tenor instruments and issuing treasury sukuks, it said.
The expected yields on T-bills and treasury sukuk issuance for one week, one month, three months, six months and nine months will be consistent with the existing monetary policy, the QCB said.
At present, T-bills have maturities of one month to three months. The total issue of T-bills in September has been valued at QR3bn, of which QR1.2bn is through T-bills with six-month maturity and QR900mn through one-month and nine months respectively.
Market experts view that the move ought to increase the attractiveness of Qatar as a portfolio investment destination.
T-bills are known as low-risk financial instrument, they are easy to operate without causing any capital loss to their holders. A T-bill is usually sold at discount, which means at lower price than its nominal value.
Upon maturity, the government is committed to pay the nominal value of those T-bills. They are considered one of the monetary policy instruments for domestic liquidity management.
Sukuks are considered as one of the major government debt instruments used by the government to provide the necessary liquidity for projects funding, it said.