Doha - Governor of the Qatar Central Bank HE Sheikh Abdullah bin Saoud Al-Thani, praised the banking and financial system in the State of Qatar, noting in this context that the fixed exchange rate of the Qatari riyal against inflation and its link to oil prices constitutes an added value to it.
His Excellency noted that the banking system in the State of Qatar has proven its success and its ability to mitigate risks, given the growth of the gross domestic product, and is expected to achieve greater growth during this year.
His Excellency pointed out during his participation in a discussion session held within the activities of Qatar Economic Forum, Powered by Bloomberg that the recovery that several countries witnessed after overcoming the consequences of the Coronavirus (Covid-19) pandemic, along with the growth in government spending and the economic support packages that it provided, led naturally, to boost demand, which in turn leads to an increase in inflation, indicating that in the long run there will be no rise in inflation.
His Excellency explained in this context that what is worrying is that interest rates have been low over the past years, with investors investing in high-return instruments.
With regard to oil prices and their impact on the countries of the region, His Excellency confirmed that the State of Qatar has approved its budget according to the pricing of a barrel of oil at USD 40, noting that the rise in the price of a barrel to USD 75 is a positive matter and is in the interest of the national economy.
His Excellency said that for the State of Qatar, the high oil price is a positive thing, but with the consequences of the Coronavirus pandemic overcoming, Qatar must its monetary policies.
With regard to the global economy, risks in some markets, challenges and risks facing the global economy and global banks, His Excellency explained that there are no predictions that show that there are risks over the coming years, expecting the global economy to resume its growth.
In this context, His Excellency indicated that the fears come from the extent of the ability to recover, especially since the pandemic lasted for a year and a half, stressing that there are no risks related to inflation, but what caused tensions in the central banks is that the main title for this stage is that inflation will be temporary.
His Excellency added that there are positive indicators, but according to the current data, and with the continued increase in demand, inflation may continue, which may affect some consumers and investors.
On digital currencies and their future, His Excellency stated that this field is given importance by central banks, but it does not have a significant role in the State of Qatar, pointing out in this context that the State of Qatar has laid solid foundations and developed a good strategy related to financial technology, as it conducts research in digital currencies.
His Excellency explained that during the Coronavirus pandemic, there was a prominent activity for financial technology and electronic payment, stressing that there must be great caution regarding the payment system to ensure that payment methods are reliable, which is something that must be taken into consideration.
