Qatar international reserves recover to $39bn in August

Qatar’s international reserves recovered to $39bn in August with the disclosure of $19bn in foreign assets by the Qatar Central Bank, QNB’s latest ‘Qatar Monthly Monitor’ shows.According to QNB, Qatar’s imports recovered close to pre-blockade levels as new trade routes and new trade partners were established.The current account surplus widened to 2.4% of GDP while the financial account swung into deficit, while the fiscal deficit narrowed to 5.5% of GDP in the first quarter from 17.9% in Q4, 2016, QNB said.Brent crude prices rose 17.3% to $57.5 for a barrel in September while Qatar’s oil production stayed flat at 611,000 bpd in July, QNB said.With regard to Qatar’s banking sector, QNB said the banking sector assets grew by 13.5% in August from 10.9% in July, reversing three months of slowing growth. Bank deposit growth accelerated to 20% in August from 12.8% in July, while credit growth accelerated to 14.5% in August from 11.5% in July, the monthly monitor said. In recent months, a decline in private resident deposits has been offset by an increase in public sector deposits.Broad money supply (M2) grew by 14.4% year on year in August from 8.3% in July while the overnight interbank rates rose to 2.13% in August from 1.8% in July; the three-month interbank rate rose to 2.57% from 2.23%, QNB said.The real estate price index picked up slightly in Q2 compared to Q1, although it was still down 5.5% year on year in June, QNB said.