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Qatar could defend currency for years, its balance sheet shows

It's so rich that it can offset threatened capital outflows by liquidating a portion of its reserves

Reuters  |  Dubai | London 

Qatar could defend its currency for years in the face of economic sanctions by other Gulf states, the country's balance sheet suggests, so the riyal's peg to the US dollar is unlikely to fall victim to the region's diplomatic crisis. The decision by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt to cut diplomatic and transport ties this week threatens to hurt Qatar's trade balance, suck deposits from its banks and push out foreign investment. Reflecting this threat, the riyal fell on Friday in the offshore forwards market to its lowest level ...

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First Published: Fri, June 09 2017. 21:10 IST