Qatar boycotts billions of sovereign fund
Qatar's sovereign wealth fund injected dollar deposits in some local banks last week as a precautionary measure, fearing a lack of liquidity if the Arab boycott continues.

A banker working in Qatar, whose firm has received funds, said the total amount of new deposits the Qatar Investment Authority (QIA) invested in the banking system at the end of last week was estimated at several billion dollars. He described the deposits as a "precautionary" measure.

The banker, speaking on condition of anonymity due to commercial sensitivities, told Reuters that at a recent meeting between executives of major commercial banks and central bank officials, executives said they did not need dollar liquidity at the moment.

But the banker explained that if the diplomatic crisis lasted for another three or four months and Saudi and UAE banks withdrew their deposits from Qatar, local banks may need official help.
Qatar Investment Authority has stakes in Qatari banks, including 50 percent of Qatar National Bank, the country's largest bank, and a 16.9 percent stake in Qatar Islamic Bank, the largest Shariah compliant bank by assets.

The Qatari riyal, pegged at 3.64 riyals to the US dollar, moved slightly below the level of pegging since the diplomatic crisis began on June 5, and foreign banks are currently pricing at around 3.67 riyals to the dollar.

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Qatar boycotts billions of sovereign fundQatar boycotts billions of sovereign fund