The gold reserves and balances with foreign banks were seen considerably outpacing the Qatar Central Bank’s (QCB) total official reserves in June this year, according to the banking regulator’s data.
The QCB’s total official reserves were seen growing less than 1% year-on-year to QR149.04bn in June 2021.
In the case of balances with foreign banks, they saw 32.86% surge year-on-year to QR42.49bn or 28.51% of the total official reserves at the end of June 2021. It saw its peak in May this year, when the balances with foreign banks amounted to QR54.33bn.
The gold reserves expanded 31.03% year-on-year to QR12.33bn in June this year. This constituted more than 8% of the central bank’s total official reserves in the review period.
Between June 2020 and 2021, the gold assets of the QCB peaked in May this year, when its level was at QR12.64bn.
One of gold’s primary roles for central banks is to diversify their reserves. The banks are responsible for their nations’ currencies, but these can be subject to swings in value depending of the perceived strength or weakness of the underlying economy.
The special drawing rights (SDRs) shot up 3.7% year-on-year to QR1.96bn in June 2021. The SDRs are interest-bearing international reserve assets created by the International Monetary Fund in 1969 to supplement other reserve assets of member countries.
The SDRs are used by developing countries to strengthen their currency reserves without the need to borrow at high-interest rates or run current account surpluses at the detriment of economic growth.
However, foreign securities reported 11.65% shrinkage year-on-year to QR92.26bn or 61.9% of the total official reserves in the review period. Its peak was recorded in June 2020 when the levels were at QR104.43bn.
A 1.44% increase in other liquid assets in foreign currency to QR56.36bn helped the central bank’s total reserves expand 1.05% year-on-year to QR205.4bn in June 2021. The other liquid assets in foreign currency were seen peaking in June 2021.
Within the commercial banks, their overseas investments were seen rising 0.18% year-on-year to QR56.89bn in June 2021.
The dues from overseas banks amounted to QR98.4bn, which reported 12.65% increase in June 2021 on a yearly basis.
The central bank's net foreign assets amounted to QR148.13bn at the end of June, 2021, representing a 0.89% increase year-on-year.