DOHA: Qatar’s budget surplus stood at more than QR100bn by the end of January 2015, despite the sharp decline in global oil prices.
Qatar also managed to achieve QR160bn current account surplus in the balance of payments during the first nine months of 2014, said Qatar Central Bank (QCB) Governor H E Sheikh Abdullah bin Saud Al Thani (pictured) here yesterday.
Addressing the MEED Qatar Projects conference 2015, Sheikh Abdullah said the Qatari economy continued to maintain its strong growth, particularly in the non-oil sectors. The central bank is closely monitoring emerging risks to the financial system, particularly those related to inflation. The inflation rate was contained to a large extent, as inflation ratio did not exceed 3 percent in 2014.
The global economic landscape has seen the emergence of new economic, financial and political challenges that left a negative impact on the global economy growth. Global financial markets experienced huge volatility during the period. International oil prices declined to a historical low. Geopolitical tension exacerbated the situation.
All these posed unprecedented challenges in the State of Qatar, but the country managed the situation by increasing its focus on supporting financial stability, economic diversification and coordination in fiscal and monetary policies, Sheikh Abdullah said. On the reforms in Qatar’s financial market, the central bank Governor noted the local bourse was upgraded in 2014 to emerging market status by the Morgan Stanley Capital International.
QCB enjoys excellent relations with all the international and regional financial organisations. “We strive to enhance our relationship with other central banks to serve the common interest,” he said, pointing to a memorandum of understanding and agreements signed recently with China and South Korea including a Swap Agreement with the People’s Bank of China as well as an MoU to establish a centre for renminbi clearing and settlement in Doha.
The signing of the MoU will enhance the strong ties between China and Qatar and position Qatar as the regional centre for the RMB clearing and settlement. The centre will be opened next month.
The memorandum of understanding with the Bank of Korea is aimed at supporting the economic and banking relations and strengthening cooperation in the financial and banking sector.
The Peninsula
