CBK issues 200 million dinars in bonds and Tawarruq at 4.125% return rate for three-month term

The Central Bank of Kuwait (CBK) announced the completion of its latest issuance of Central Bank bonds and Tawarruq instruments, with a total value of 200 million dinars. The issuance is set for a three-month maturity period and offers a return rate of 4.125%.

This move is part of the CBK’s ongoing efforts to regulate liquidity in the local banking sector and manage short-term interest rates in line with its monetary policy objectives. Such instruments — bonds and Tawarruq — are regularly used by the Central Bank as tools to absorb excess liquidity from the market and maintain monetary stability, reports Al-Jarida daily.

By issuing short-term debt instruments with competitive returns, the CBK supports the strength of the financial system and helps guide the interbank interest rate environment. The 4.125% yield reflects current market conditions and the CBK’s careful calibration of returns to align with economic trends and inflation expectations.

These issuances are closely watched by financial institutions and investors, as they provide insight into the Central Bank’s monetary stance and offer a benchmark for short-term borrowing costs within Kuwait’s banking sector.