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Qatar stock exchange drops by 2.3 pct as deadline nears

Published: Updated:

Qatar's stock exchange has dropped following an extended holiday closure as the tiny Gulf nation faces a deadline to accept demands from four Arab countries.

The benchmark QE Index lost more than 3 percent Sunday before recovering some of its losses later in the trading session to close down 2.3 percent at 8,822.15.

The market was last open before the Eid al-Fitr holiday on June 22. That was the day that Saudi Arabia, the United Arab Emirates, Egypt and Bahrain issued Qatar a 13-point list of demands and gave it 10 days to comply.

The ultimatum expires Sunday, though the countries involved have not provided a precise time or detailed what immediate penalties, if any, Qatar will face.


Experts have warned that foreigners exiting Qatar’s Stock Exchange may lead to shrinking the bourse by $15 billion.

Qatari banks have increased interest rates on deposits to confront the insufficient cash liquidity.

The Qatari riyal exchange rate decreased by four percent in exchange of Special Drawing Rights during the first half of 2017. The Special Drawing Rights is an international reserve asset created by the International Monetary Fund to supplement the existing official reserves of member countries.

It was 4.865 riyals to each SDR unit on January 3, 2017 but it reached 5.062 riyals to each SDR unit on June 29, 2017 after Saudi Arabia, the UAE, Bahrain and Egypt cut ties with Doha.

The Qatari riyal exchange rate thus decreased since January as each riyal back then was worth around 0.2055 SDR unit but in June each riyal became worth 0.1975 SDR unit.

Experts have warned that foreigners exiting Qatar’s Stock Exchange may lead to shrinking the latter by $15 billion.

Qatari banks have increased interest rates on deposits to confront the insufficient cash liquidity.

The Qatari riyal exchange rate decreased by 4% in exchange of Special Drawing Rights during the first half of 2017. The Special Drawing Rights is an international reserve asset created by the International Monetary Fund to supplement the existing official reserves of member countries.

It was 4.865 riyals to each SDR unit on January 3, 2017 but it reached 5.062 riyals to each SDR unit on June 29, 2017 after Saudi Arabia, the UAE, Bahrain and Egypt cut ties with Doha.

The Qatari riyal exchange rate thus decreased since January as each riyal back then was worth around 0.2055 SDR unit but in June each riyal became worth 0.1975 SDR unit.

(With AP)