The banking sector in Qatar achieved significant positive indicators during July 2024, compared to the same period in 2023.. Qatar Central Bank announced that the banking sector witnessed an increase in the total assets of commercial banks by 6.4% to reach about 2 trillion riyals.
Total domestic deposits increased by 11.4% to reach 833 billion riyals, the Central Bank added on its official account on the X platform. Total domestic credit increased by 7.3% to reach about 1.3 trillion riyals. Local liquidity, represented by money supply – M2 – increased by 6.4% to reach 727.4 billion riyals.
In accordance with Article No. (7), the Bank, as the competent supreme authority, and within the framework of the national strategic vision, and in accordance with the best international standards and practices, shall develop and implement the country’s monetary policy, exchange rate policy, and policies related to the regulation, control, and supervision of financial services, businesses, and activities in the country. To this end, it shall undertake the necessary work, in particular the following:
Issuing currency and regulating its circulation.
Acting as a government bank.
Acting as a bank for banks and other financial institutions operating in the country.
Establishing systems and rules that help stabilize the financial and banking sector and increase its efficiency and development.
Establishing controls, instructions and guidelines for governance, transparency and good management in all financial institutions subject to the Bank’s supervision.
Establishing and implementing the foundations, controls and standards for the control and supervision of financial institutions.
Monetary policy objectives
Maintaining the stability of the exchange rate of the riyal against the dollar is one of the most important priorities of the monetary policy objectives of the Qatar Central Bank. The monetary policy of the Qatar Central Bank is designed and implemented to manage short-term interest rates between banks, in a way that maintains the stability of the parity rate between the riyal and the dollar.
The current interest rate framework focuses on the overnight interbank offered rate as an operational target and the purpose is to maintain the overnight interbank offered rate in line with the QCB deposit rate through liquidity management operations.
The current accounts of commercial banks with the Qatar Central Bank represent the main concept of liquidity in relation to the Bank’s monetary policy, as these deposits can be used at any time as means of payment at the initiative of the banks. Accordingly, these deposits are called “primary liquidity” or “Qatari Riyal liquidity.”