Reuters/Doha
Qatar's central bank is comfortable with liquidity levels in the banking system and does not see any need for intervention in the money market ahead of a possible US interest rate hike, central bank governor HE Sheikh Abdullah bin Saud al-Thani said on Sunday.
"Liquidity is very comfortable at the moment. I don't see there is a need of any intervention at the moment.
"The interest rate in the US might in the future go up and that will give us a chance to review monetary policies, which will be based on the condition of the market at that time," he told reporters on the sidelines of a conference in Doha.
Sheikh Abdullah also said the recent reduction in the size of Treasury bill issues was not a sign of tightening liquidity. In October and November, the central bank sold half the amount of bills that it planned at auctions.
"The drop from 4bn (riyals) to 2bn in Treasury bills is not a sign of anything, it's just trying to base the quantity of Treasuries to smooth the yield curve. It's not a sign that there is no interest, it has nothing to do with liquidity," Sheikh Abdullah said.
The three-month Qatar interbank offered rate has jumped to 1.40% from 1.19% at the end of September. Private bankers believe the rise is related to the approach of a US rate hike and a reduction in new oil and gas revenues flowing through the system because of low energy prices.
