Qatar’s international reserves up 5.2% to reach $68bn, central bank reveals

Qatar’s international reserves increased by 5.2 percent annually to 247.4 billion Qatari riyals ($67.94 billion) in March, despite a decrease in balances held in foreign banks.

Official reserves of the Qatar Central Bank were 11.34 billion riyals higher at the end of the third month of the year compared to March 2023, according to the country’s official news agency.

This increase came against a backdrop of balances held in foreign banks see a year-on-year decline of 10.77 billion riyals.

Meanwhile, the central bank’s balances of bonds and foreign treasury bills surged by about 16.74 million riyals to 140 billion riyals in March, the Qatar News Agency reported.

The official reserves comprise various crucial components, including foreign bonds and bills, cash reserves held with foreign banks, and gold holdings. Additionally, they include special drawing rights deposits and Qatar’s stake in the International Monetary Fund.

Gold reserves saw a significant surge, reaching 26.75 billion riyals by the end of March, marking an increase of approximately 5.48 billion riyals compared to the same month in 2023.

In addition to the official reserves, there are other liquid assets such as foreign currency deposits.

Conversely, Qatar’s shares in Special Drawing Rights deposits at the IMF saw a slight decrease, dropping by 130 million riyals from March 2023 to reach 5.18 billion riyals a year later.

IMF projection

Qatar’s economy is expected to stabilize in the near future after experiencing a surge in 2022 due to hosting the FIFA World Cup, according to the IMF.

The Washington-based lender has forecasted a 1.9 percent growth in the country’s gross domestic product for 2024.

Highlighting Qatar’s resilience to recent global disturbances, the IMF stated that the country’s economic prospects are promising.

Furthermore, it noted that the Hamas-Israel conflict has not had any discernible impact on Qatar.

“Risks are broadly balanced. Maintaining prudent macroeconomic policy and intensifying reform efforts will support Qatar’s resilience to shocks and accelerate its economic transformation,” the IMF said.