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Qatar's central bank boasts $340bn in reserves

Reported by: IANS Doha 10 Jul 2017, 17:33:24 IST
IANS

The governor of Qatar's central bank said the country has $340 billion in reserves and the economy will be able to fully withstand any financial shocks brought on by the ongoing dispute with its Arab neighbours, the media reported.

Speaking at the bank's headquarters in Doha, Abdullah Saud Al-Thani told CNBC in an exclusive interview on Sunday that the Qatar Central Bank has $40 billion in cash reserves plus gold. 

In addition, the Qatar Investment Authority has $300 billion in reserves that it could liquidate. 

"This is the credibility of our system, we have enough cash to preserve any, any kind of shock," he said.

Referring to accusations placed by other Arab nations that accuse Qatar of supporting terrorism, Al-Thani said: "We're not guilty...We have no challenges, we welcome those to review all our books, they are open." 

On June 5, Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut off diplomatic ties with Qatar and imposed punitive measures, accusing Doha of "supporting terrorism and interfering in their internal affairs".

"Qatar has already had a good and unique system. We have laws established against all these kinds of terrorists," Al Thani told CNBC. "We work with the IMF (International Monetary Fund) and other institutions to establish our laws and audits and reviews."

Qatari stock markets have sunk lower on the boycott and the country's currency, the riyal, has seen wild fluctuations, while credit ratings agencies have warned on a period of uncertainty for the nation.

However, Al-Thani told CNBC that while the bank has noticed money outflows from some non-residents, the size of them was not particularly significant.

"So we don't believe that there is anything to worry about at this moment. What I can say is that our environment is proof to anybody that we are first of all solid, strong and resilient against any kind of shocks," he added.