How oil will affect domestic borrowing, liquidity, inflation

Beyond the creation of jobs, oil production will have a big impact on banking system liquidity, government borrowing and monetary policy. Projections by the finance ministry indicate that the expected oil revenues will have a significant impact on foreign exchange inflows and inflation. On domestic borrowing, Ocailap said additional oil revenues are expected to reduce the fiscal deficit and the Government’s domestic borrowing requirements, leading to lower issuance of treasury bills and bonds.