Qatar central bank says taking action to increase liquidity

Governor says central bank has stepped up monitoring of liquidity in the system, issued circulars to improve liquidity
Qatar money, Qatar currency, Qatar finance, Qatar banking, Qatar finance
By Reuters
Mon 14 Mar 2016 01:04 PM

Qatar's central bank is taking necessary monetary policy measures to increase liquidity in the banking system, central bank governor Sheikh Abdullah bin Saud al-Thani told a financial industry conference on Monday.

Sheikh Abdullah said the central bank had stepped up monitoring of liquidity in the system and had issued circulars to improve liquidity.

He did not elaborate on the circulars, and declined to comment after his speech.

Liquidity has tightened since mid-2015 as lower oil and gas prices have cut flows of new money into the economy. The three-month Qatar interbank offered rate jumped to 1.46 percent in mid-February from 1.13 percent at the end of last June.

Since then, rates have come off their highs, however, with the three-month rate at 1.37 percent on Monday. Among its steps, the central bank has cancelled several monthly Treasury bill auctions after banks bid at high yields.

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