21 June 2022

/Qatar Economic Forum/ Qatar Central Bank Governor: QCB Has Enough Tools to Contain Inflation

Local
  • QCB
  • Qatar

Doha, June 21 (QNA) - HE Governor of the Qatar Central Bank (QCB) Sheikh Bandar bin Mohammed bin Saoud Al-Thani affirmed that QCB has enough tools to contain inflation while maintaining the peg of its currency to the dollar, indicating that it has diversified its portfolio to include assets outside the United States and is still confident that it has the tools to control in inflation.
In the "inflation test" session within the activities of the "Qatar Economic Forum, Powered by Bloomberg," His Excellency said that QCB reserves, which exceed USD 57 billion, were used to invest in "different major currencies," including Europe and the Far East, in addition to the United States.
He pointed out that the QCB strategy is based on permanent diversification of the currency basket and not relying on a single currency, adding that QCB will continue to do so.
He added that the monetary policy of the State of Qatar served the economy "very effectively," adding that he doesn't expect any changes in the exchange rate policy.
Central banks around the world are trying to rein in inflation that has accelerated to levels not seen in decades, driven in part by higher energy prices and supply shocks from the Russia-Ukraine war.
The governor explained that QCB is working to contain inflation in the country in a direction that is completely in harmony with the US and the measures taken by the US Federal Reserve, expecting an increase in interest rates to contain inflation.
The figures confirm that inflation rates in Qatar accelerated for three consecutive months to exceed 5 percent in May. The IMF also expects price gains to slow to an average of 3.5 percent in 2022.
QCB's policies only partially matched the US Federal Reserve's decision this month, when the US Federal Reserve raised interest rates by 75 basis points as inflation hit a 40-year high, where Qatar raised its lending rate by 50 basis points to 3.25 percent, while deposit and repurchase rates increased by 75 basis points. (QNA)

Keywords

Economy, Qatar
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