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Qatar stands up to Saudi, says not worried as it has $340 bn in reserves

Despite market ructions, economists say Qatar has taken a number of measures to weather the crisis

Reuters  |  Dubai 

Qatar's central bank governor Sheikh Abdullah bin Saud al-Thani. Photo: Reuters
Qatar's central bank governor Sheikh Abdullah bin Saud al-Thani. Photo: Reuters

has $340 billion in reserves including holdings of its sovereign wealth fund that could help the Gulf country to weather the isolation by its powerful Arab neighbours, central bank governor Sheikh Abdullah Bin Saoud al-Thani told CNBC.

"This is the credibility of our system, we have enough cash to preserve any kind of shock," he told the news channel in an interview published early on Monday on its website.

Al-Thani said the central bank has $40 billion in reserves plus gold, while the Investment Authority has $300 billion in reserves that it could liquidate.

Qatari stocks have weakened and the riyal has been volatile in the spot market since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with on June 5, accusing it of backing terrorism. Dona has denied these allegations.

"has already had a good and unique system. We have laws established against all these kinds of terrorists ," al Thani told CNBC. "We work with the IMF (Monetary Fund) and other institutions to establish our laws and audits and reviews."

"We have no challenges, we welcome those to review all our books, they are open," he added.

Al-Thani said while the central bank has noticed fund outflows from some non-residents, the amounts weren't particularly significant.

"There is more [money] coming in," he said, confirming that inflows are exceeding outflows.

He said long-term contracts in the gas and oil sectors were not seeing any disruptions.

Rating agency Moody's Investors Service earlier this month changed the outlook on Qatar's credit rating to negative from stable, citing economic and financial risks arising from the ongoing dispute between and the Saudi-led alliance.

Despite the market ructions, economists say Qatar, the world's top liquefied natural gas exporter, has taken a number of measures such as a planned boost in gas output and new transport routes to weather the crisis.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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