Qatar Economic Outlook Issue Number 13

 
Table 2-3: Interest Rates of the COVID-19 
Guarantee Program
 
Interest to be
paid by customer 
QDB 
Contribution
Total 
Interest 
0 
1.5% 
1.5% 
0-6 
months 
0 
QMR + 1% 
QMR + 1% 
7-12 
months 
0 
QMR + 2% 
QMR + 2% 
Year 2 
QMR + 2% 
0 
QMR + 2% 
Year 3 
QMR + 2% 
0 
QMR + 2% 
Year 4 
Source: QCB 
 

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Part 2 - Economic Performance 2017 - 2020 
 
 
71 
Monetary Policies to Contend with 
Covid-19’s Consequences
As previously discussed in the texts 
associated with Figures (2-12 / 13), the Qatar 
Central Bank was not limited to its 
management of the crisis when adjusting 
official interest rates to contain the 
repercussions of Covid-19 on the Qatari 
economy. Rather, it coordinated with the 
Ministry of Finance to maintain domestic 
liquidity through the sale and purchase of 
treasury bills and government bonds and the 
issuance of international bonds. The QCB 
has also taken several administrative 
measures
27
to achieve stability in the banking 
business, including the following:
•
All banks and exchange houses operating 
in Qatar were directed to review and 
activate business continuity plans and 
evaluate them according to the emerging 
scenarios emanating from the stages of 
the pandemic and the potential business 
risks. 
•
QCB has cancelled fees imposed on Point 
of Sale (POS) and ATM withdrawal fees. 
•
QCB has cancelled all fees and 
commissions charged for using payment 
systems between banks and exchange 
houses operating in Qatar. 
•
QCB has issued circulars to banks 
operating in the State of Qatar; especially 
during the peak of the pandemic, to 
enhance online banking services to 
customers in order to avoid customers 
visiting branches, while ensuring business 
continuity. 
•
QCB has formed a committee to follow up 
on measures to limit the spread of Covid-
19, to communicate with financial 
institutions operating in the country, to 
follow 
up 
and 
evaluate 
all 
27
http://www.qcb.gov.qa/english/supervisionandcontrol/
pages/covid19_circulars.aspx
recommendations and measures issued 
by the bank, and to address the obstacles 
that prevent their implementation. 
•
QCB reduced the costs of workers’ 
transfers transactions, as the maximum 
interbank commission in Qatar was 
reduced from QR 10 to 60 dirhams (QR 
0.6) for transactions less than QR 100, and 
then to QR 4 for transactions whose value 
is between QR 100 and QR one million, 
followed by charging just QR 6 for 
transactions worth more than one million 
riyals. It is worth noting that transaction 
costs in Qatar are low compared to other 
countries in general. 
•
Swaps and transfers of foreign assets to 
the QCB were carried out throughout 
2020, since part of QCB balances with 
foreign banks were withdrawn in favor of 
increasing its balances with local banks. 
•
Commercial banks withdrew part of their 
balances with foreign banks in the 
beginning in order to meet the rising 
domestic demand for credit by public 
institutions throughout 2020.