Qatar Economic Outlook Issue Number 13

Figure 2-25: QCB assets (points and %) 
13 
4 
276 
-
50
100
150
200
250
300
(40)
(30)
(20)
(10)
-
10
20
30
40
50
2016
2017
2018
2019
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4 
(N
ov
)
Annual
2020
2021
QR
b
iili
on
%
a
nd
p
oint
s
QC asset at local banks
Official reserve
Total QCB assets (%)
Total QCB assets (R-axis - QR bln)
Source: QCB and prepared by PSA

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Part 2 - Economic Performance 2017 - 2020 
 
 
79 
to QR 29.8 billion in November 2021. As is 
often the case, it may be more profitable to 
invest in bonds and treasury bills rather than 
keep investments as deposits at low interest 
rates 
It is clear from the monetary base data, as 
shown in Figure (2-26), that the management 
of domestic liquidity during the year 2020 was 
formulated on an increase in the monetary 
base by 28.6%, through (1) an increase in the 
currency issued by 8.1 percentage points, 
and (2) an increase in commercial bank 
deposits in the central bank by 20.5 
percentage points. 
As for the increase in the currency issued, it 
may in turn reflect the increase in the value of 
gold reserves resulting from the increase in 
the revaluation account, a consequence of 
the increase in international gold prices. As 
regards the increase in the deposits of 
commercial banks, these consist of “excess 
reserves” and “other reserves” that are 
usually deposited at the QCB to benefit from 
its interest payment while at the same time 
having them available to use to pay their 
dues when required.
The QCB also uses these reserves as a 
measure of Primary Liquidity, as its increase 
indicates an abundance of liquidity, while 
conversely, its decrease indicates a scarcity 
of liquidity. 
The same measures were also repeated 
during the period November 2020 to 
November 2021, when the monetary base 
increased by an average of 14%, as this 
increase derived from an average increase of 
4.4 percentage points in the issued currency, 
as well as from an increase in commercial 
bank deposits (others) with the Central Bank 
by 2.4 percentage points (not including 
required reserve or excess reserve). 
In general, QCB creditworthiness can be 
measured using the international reserves 
adequacy criterion as a percentage of the 
currency issued, which amounted to about 
624% at the end of November 2021, while it 
is required by law to be only 100%. It is 
noteworthy that the level of total international 
reserves and foreign currency liquidity 
amounted to about QR 209.6 billion in 
November 2021, equivalent to US$ 57.6 
billion, of which about 72.9% are official 
reserves.