Higher official reserves, brought about by robust expansion in gold holdings and foreign securities, and balances with local lenders led the Qatar Central Bank (QCB) register substantial double-digit year-on-year expansion in its asset base this August.
The central bank's official reserves witnessed a 4.54% year-on-year jump to QR147.84bn in August this year.
The yellow metal, which constituted 8% of the total official reserves of the central bank, saw 53.13% year-on-year surge to QR11.5bn in the review period, said QCB's data.
The central bank's foreign securities expanded 23.28% on a yearly basis to QR98.11bn, which amounted to 66% of the total official reserves in August this year.
The foreign securities portfolio has seen consistent increase from December 2019 to June 2020, a period that also saw a similar pattern in the gold holdings of the central bank.
The SDR (special drawing rights) holdings/International Monetary Fund reserves were up 3.72% year-on-year to QR1.95bn in the review period.
Nevertheless, the QCB saw 30.83% year-on-year decline in balance with foreign banks to QR36.28bn or 25% of the total international reserves this August.
The balances with foreign banks were seen peaking in October 2019, after which it had a chequered path throughout until August 2020.
The central bank's other liquid assets in foreign currency (deposits) amounted to QR55.9bn, which showed a 0.92% increase year-on-year in August 2020.
However, assets of the QCB grew 15.75% year-on-year to QR265.18bn at the end of August 2020.
The balances with local lenders shot up 22.12% year-on-year to QR74.86bn in the review period.
The central bank's other (non-specified) assets expanded 61.88% on a yearly basis to QR42.12bn in August this year.
On the liabilities side, the QCB witnessed more than doubling of local banks' deposits year-on-year to QR39.45bn in August 2020.
Between August 2019 and 2020, local banks' deposits with QCN had peaked at QR85.17bn in March this year, after which it was largely on the decline until July.
The required reserves expanded more than 7% year-on-year to QR39.45bn and capital and reserves by about 3% to QR147.31bn in the review period.
Banks retain with QCB amounts of compulsory reserves equal to a certain percentage of the average total deposits held by them. The ratio is calculated based on average total daily deposits on the sixteenth day of each month until the twelfth day of the following month.
The required reserves constituted more than 47% of the QR83.34bn of claims on the central bank.