“Central Bank”: Domestic liquidity increased to 740 billion riyals in May

Written By Mark

The monthly survey of the Qatar Central Bank revealed that local liquidity increased by 0.58% to about 740,167.9 billion riyals on a monthly basis last May.
According to the bank’s survey, the growth of money supply (m2) in Qatar last month supported the rise in cash equivalents by 1.6%, driven by an increase in the value of deposits in foreign currencies to about 271 billion riyals, and an increase in term deposits to about 320 billion riyals.

On the other hand, the narrow money supply (M1) last month recorded a decrease of 3.4% on a monthly basis, recording about 149.4 billion riyals, under pressure from a decline in demand deposits to 135.3 billion riyals and a decrease in cash issued by 1% at 14.2 billion riyals.
The assets of banks operating in Qatar also increased by 0.77% in May on a monthly basis, reaching 1.975 trillion riyals. Last month, loans and credit facilities to Qatari banks recorded the highest level ever at 1.32 trillion riyals, an increase of 10 billion riyals over the previous April, supported by the increase in domestic credit.
Deposits also recorded a monthly growth of about 7 billion riyals, reaching 1.032 trillion riyals, supported by an increase in public sector deposits to about 376 billion riyals.
In this context, the international reserves and liquidity in foreign currency of the Qatar Central Bank increased last May, by 4 percent, to reach 249.2 billion riyals, compared to 239.664 billion riyals in the same month of 2023.
The data also showed an increase in its total official reserves by 4.9% at the end of last May, compared to what they were at the end of the same month in 2023, by about 8.833 billion riyals, to reach 190.2 billion riyals, as a result of the increase in the Central Bank’s balances of bonds and foreign treasury bills by about 2.816 billion riyals. One billion riyals, to the level of 138.948 billion riyals in May 2024.
Official reserves consist of main components: foreign bonds and treasury bills, cash balances with foreign banks, gold holdings, Special Drawing Rights deposits, and the State of Qatar’s share in the International Monetary Fund. Added to the official reserves are other liquid assets “consisting of deposits in foreign currency,” so that the two together constitute what is known as total international reserves.
Gold stocks increased by the end of last May by about 7.276 billion riyals, compared to May 2023 to 28.327 billion riyals.
On the other hand, balances with foreign banks declined by about 1.192 billion riyals, to the level of 17.744 billion riyals at the end of last May, compared to May of 2023.
The balance of Special Drawing Rights deposits from the State of Qatar’s share with the International Monetary Fund declined by the end of last May by 66 million riyals, compared to May 2023, reaching the level of 5,186 billion riyals.