Qatar central bank to start gradual reduction of pandemic stimulus

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The central bank of Qatar said on Thursday it will start working on a gradual reduction of the measures introduced to support the economy given the recovery from the impact of the coronavirus crisis in the tiny but wealthy Gulf state.

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“QCB will begin with the implementation of the future strategy for a gradual reduction of the exceptional support stimulus packages that it launched,” it said in a statement.

This will be done “through a gradual and deliberate exit that takes into account the various interaction between monetary policy measures and the continuity of economic and banking activity in the State of Qatar,” the central bank added.

Qatari authorities made available a support package of 75 billion riyals ($20.60 billion), or about 14 percent of gross domestic product, in response to the downturn last year, of which 50 billion riyals was central bank liquidity support.

The central bank on Thursday said the local financial and banking system was stable and domestic liquidity high.

Ratings agency S&P Global Ratings last month affirmed its ‘AA-(minus)’ rating of Qatar, saying that the country’s fiscal and external buffers mitigated the risks deriving from a rapid growth of foreign debt in the banking system.

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