Governor of the Qatar Central Bank: State reserve funds sufficient to coexist with the embargo as levels of liquidity improve

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His Excellency Sheikh Abdullah bin Saud Al-Thani, Governor of the Central Bank of Qatar said the State of Qatar has financial surpluses, be they the central bank’s reserve funds or in the sovereign wealth fund. The State reserve funds are more than sufficient to sustain the unjust indefinite trade embargo, revealing the stability of the economy and the liquidity position by the end of 2017 and its improvement in 2018, as energy prices increased gradually.

The Governor of the Central Bank of Qatar said that the adequacy of the international reserves of the state in general and the central bank in particular, represent a wall of resistance and guaranteed certainty of the stability of the Qatari Riyal exchange rate against the US dollar, which represents the strength of the riyal and the solidity of the environment on which it is based.

“The size of the international reserves at Qatar Central Bank is significant and consistent with international economic ratios. The size of the foreign currency reserve fund at the bank is excellent and covers the local market needs.”

Sheikh Abdullah bin Saud al-Thani, in a related context, continued investigations into the attempts of the countries applying the embargo to tamper with national currency and sovereign bonds, pointing out that these investigations are carried out in cooperation with the Public Prosecution and the competent security services.

He stressed that the Central Bank of Qatar has taken all the necessary measures to protect the national Qatari currency and face the trade war by monitoring the developments of the crisis closely, prepare for it by all means available and address rumours that promote the exploitation of the Qatari economy, especially its financial sector.

He explained that the Central Bank of Qatar decided to keep the ’emergency committee’ in a state of permanent alert to follow the procedures of work in banks to ensure compliance with international standards and to confirm the implementation of the instructions of the bank on the adequacy of capital and liquidity, adding that  the Central Bank will take all the necessary actions in this direction, including periodic meetings with the executive heads of banks operating in the country, daily monitoring of liquidity levels and cash transfers in the banking system, conducting stress tests under worst case scenarios, careful monitoring of the movement of deposits and transactions in foreign exchange and contingency plans to address any potential risks.

He pointed out that all the exchange companies operating in the country have a strong financial position with total assets of 1.9 billion riyals at the end of 2017, a growth rate of 27 per cent compared to 2016, indicating that there are opportunities for further growth during 2018 in light of the economic growth of the country.

He pointed out that the Central Bank of Qatar is in direct contact with the money exchange shops to identify their daily needs of currencies and to meet those needs for foreign currencies, and worked in coordination with the relevant authorities in the State (Ministry of Interior, Customs) to facilitate the procedures of importing currencies from abroad and remove any restrictions or obstacles to the importation of those currencies.