Qatari financial institutions are under pressure following the sanctions imposed by Arab Gulf states, leadint to outflow of funds. The boycott which began two months ago led some companies and individuals to withdraw money from Qatari banks.
In a bid to mitigate this and increase its deposits following the outflow, Qatar Islamic Bank (QIB) on Sunday has started offering certificates of deposit in Qatari riyals and US dollars.
The bank’s new two-year CDs offer a rate of 3.75 percent for riyal-denominated paper and 2.75 percent for dollar paper. Those rates are 1 percentage point higher than rates offered for similar paper in QIB's first CD series in 2015.
The QIB said on Sunday that it was offering one- and two-year CDs in its second series of such paper. According to The Associated Press, the first series was launched in December 2015.
It has been reported that deposits in Qatari banks shrank 1.8 percent from June. (More here).
QIB’ s customer deposits fell to 96.9 billion riyals ($26.6 billion) at end-June from 103.9 billion riyals at end-March, according to its financial statements.
- With agencies
- Sanctions cut Qatar central bank’s foreign reserves by $10.4 bln in June
- Foreign deposits in Qatar’s banks fell the most in two years
- Qatar central bank raises deposit rate 25 bps, keeps others unchanged
- Dollar shortages hit Qatar exchange houses as foreign banks scale back ties
- UAE c. bank bars deals with Qatar-linked people, bodies on terrorism blacklist