During the current year, Qatar expanded the purchase of gold reserves, bringing its stock – reserves – of the yellow metal to the equivalent of about 34.4 billion riyals at the end of last November, an increase of 10.6 billion riyals from November 2023.
The Qatar Central Bank revealed in its reports on reserves that gold reserves were 7.5 billion riyals in 2019, rose to 12.5 billion riyals in 2020, and remained the same in 2021, but rose to about 20 billion riyals in 2022, then continued to rise to 24.4 billion riyals in the year. Past 2023.
This year, during March, it rose to 26.8 billion riyals, in April it continued to rise to about 28 billion riyals, in May to 28.3 billion riyals, in June it rose to about 29 billion riyals, and finally in July it reached 30.7 billion riyals, then 34.4 billion in November. the past.
Securing and protecting the economy
Financial and economic experts confirm that Qatar’s desire to buy and store gold confirms its ability to secure and protect the economy from any crises or challenges, and they stress that the current period is witnessing a demand by governments and individuals to buy and store gold, and to invest in the yellow metal, as it is the optimal investment in light of global crises. The most attractive safe haven throughout history, which achieves financial returns without any risk compared to other financial, commercial and real estate investments.
Financial and economic expert Abdullah Al Khater confirms that Qatar’s expansion in buying gold during the current year represents good investment opportunities for both governments and individuals, and it is a policy followed by major countries, as the yellow metal is considered a store of value without any risk at all, as gold prices do not decrease, especially in the long term. The long one.
Al Khater adds that there are investment opportunities that are good during crises, and purchasing gold and including it with countries’ international reserves is considered one of the most important of these opportunities. Therefore, the state has followed a flexible reserve management policy, based on monitoring global markets and choosing investments that are not affected by financial and economic fluctuations.
Al Khater points out that Qatar’s gold reserves have increased significantly over the past two years and are expected to rise next year, 2025.
Al Khater confirms that investing in gold prevents risks to Qatar’s international reserves, and also contributes to the rise in the value of these reserves, as a result of the rise in gold prices in global markets. He stressed the successful management of gold reserves followed by the Qatar Central Bank, as the bank increased gold reserves with expectations. High prices, which protects the Qatari economy against any expected fluctuations in global markets.
Good investment for international reserve
For his part, Abdul Aziz Al-Emadi, former Vice President of the Qatar Chamber, confirms the Qatar Central Bank’s keenness to invest well in the international reserve, including gold reserves, as they are the most important safe havens. He adds that the rise in this reserve confirms the strength and durability of the Qatari economy, and that the state has succeeded in steering the ship during crises, including Corona and the current fluctuations in global markets, as it continued to implement the plans it had previously decided.
Al-Emadi explains that, according to international financial institutions, gold prices are expected to record increases during the current year, and to continue, as futures contracts for the precious metal are expected to rise, with investors becoming increasingly concerned about low interest rates by the Federal Reserve, which decline periodically.
The international reserves and liquidity in foreign currency of the Qatar Central Bank increased last November, by 4.05 percent, to reach 254.743 billion riyals, compared to 244.815 billion riyals in the same month of 2023.
High official reserves
Data issued by the Qatar Central Bank showed an increase in its official reserves at the end of last November, compared to what they were at the end of the same month in 2023, by about 9.812 billion riyals, to reach 195.734 billion riyals, as a result of the increase in the Central Bank’s balances of bonds and foreign treasury bills by about 1,477 billion riyals. One billion riyals, to the level of 138.124 billion riyals in November 2024.
Official reserves consist of main components, namely 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.
On the other hand, 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 November by 138 million riyals, compared to November 2023, reaching the level of 5.131 billion riyals.
Balances with foreign banks also declined by about 2.160 billion riyals, to the level of 18.109 billion riyals at the end of November this year, compared to November of 2023.
The Qatar Central Bank confirms that it manages foreign reserves, including gold balances, in a cautious manner, in order to maintain the exchange rate of the riyal against the dollar and other currencies. The Central Bank adds that the basic principles of investment policy include preserving capital and maintaining the availability of liquidity, in addition to ensuring an appropriate return for the portfolio. The investment reserve includes foreign currencies, bonds, securities and gold. The reserve is managed by the investment committee in the bank, which is chaired by His Excellency the Governor. The committee is responsible for directing the management of the reserves and monitoring the financial portfolio. The bank, in addition to ensuring investment and diversification in financial instruments that are compatible with the objectives of the general investment policy and in accordance with the investment policy followed by the bank.