Qatar central bank's $1.2bn bond sale signals easing liquidity

Since June, money rates have come off their highs and liquidity has improved amid new era of low oil prices
Qatar central bank's $1.2bn bond sale signals easing liquidity
By Reuters
Tue 20 Sep 2016 03:45 PM

Qatar's central bank sold 4.6 billion Qatar riyals ($1.26 billion) of conventional and Islamic government bonds on Tuesday in its second domestic government debt offer this year, suggesting liquidity is easing in a banking system pressured by low gas prices.

The central bank sold a total of 1.975 billion riyals of conventional bonds, including 450 million riyals of three-year bonds at a fixed rate of 2.25 percent, 775 million riyals of five-year debt at 2.75 percent, 500 million riyals of seven-year debt at 3.25 percent and 250 million riyals of 10-year debt at 3.75 percent.

In addition, it sold 2.625 billion riyals of sukuk.

The central bank only issued its first domestic bonds this year in August when it sold 4.6 billion riyals of conventional and Islamic government bonds.

Reduced state revenues due to low natural gas prices cut flows of new petrodollars into Qatar's banking system this year, pushing money rates up sharply and causing the central bank to cancel several monthly sales of short-term bills.

Since June, however, money rates have come off their highs and liquidity has improved somewhat along with a rise in government deposits at commercial banks.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.