During the past five months, he said the impact of the weakening US dollar and announcement of the economic blockade on domestic liquidity had been addressed by “making available sufficient foreign currency resources and domestic liquidity” to the banking sector.
The banking sector has also improved its funding structure since June 2017 and has ample liquidity at present to support credit growth, as well to mitigate any unforeseen capital outflows, he said.
In an interview with the Euromoney Qatar Conference 2017, Sheikh Abdulla said, “I would like to stress that the aggregate of QCB’s international reserves and foreign currency liquidity, which amounts to $35.6bn in end September 2017, provide us the comfort to meet Qatar’s foreign currency-related payment commitments. Furthermore, including the reserve maintained by the sovereign wealth fund, we have around $340bn of international reserves, which allow us to mitigate any pressure on the exchange rate.”
As QCB, he said, “We would continue to focus on exchange-rate stability, price stability and financial stability. Achievement of these objectives would facilitate and support rapid growth and diversification of the economy. The major thrust of measures would be on the development of the private sector, promotion of a knowledge-based economy, the generation of employment opportunities, and the creation of a conducive environment for foreign investment and enrichment of human capital. The adoption and management of fintech innovations and cybersecurity are among the emerging challenges to financial stability and will also be among the priorities in policy formulation.”
On steps taken by Qatar and QCB to support private sector during the period, he said, “The private sector is playing a larger role in the economic development of Qatar. The implementation of QNV 2030 and the five-year National Development Strategy have reinforced the private sector and brought the sector into the mainstay in building a self-sustained economy. The unjust embargo opened up further avenues for development in the sector and the authorities are providing maximum support to conduct their business activities without any hindrance”
The launch of new maritime routes between Hamad Port and a number of ports in Oman, Turkey, India and other countries eased the flow of trade between Qatar and its trading partners. Many alternative options are now available for the SME sector to meet their demands for raw materials.
In the banking sector, Qatar Development Bank (QDB) is coordinating the efforts to provide support to the private sector. One of the major initiatives in this regard is the "Buy local products" exhibitions conducted by QDB.
These exhibitions are targeted to develop indigenous industries, empower the local private sector and diversify the economy. QDB is also focused on the growth of small and medium enterprises in key sectors by offering a number of services through a single window system. Furthermore, through smart, targeted financing products and advisory support services, QDB is nurturing a sound and sustainable knowledge-based economy, Sheikh Abdulla noted.
HE the Qatar Central Bank Governor Sheikh Abdulla bin Saoud al-Thani
QCB is committed to maintaining the stability of the Qatari riyal’s peg to the US dollar, said HE the Qatar Central Bank Governor Sheikh Abdulla bin Saoud al-Thani.
