Boycott cuts Qatar central bank’s foreign reserves by $10.4 b in June

DUBAI

The Qatar central bank’s net international reserves plunged by $10.4 billion (Dh38.2 billion) in June to $24.4 billion because of the boycott by Arab states, central bank data showed.

Reserves hit their lowest level in at least five years. Saudi Arabia, the UAE, Bahrain and Egypt cut ties with Qatar on June 5, causing some banks and portfolio investment funds to pull money from the country, depleting the reserves.

However, Qatar’s sovereign wealth fund is believed to have around $180 billion or more of liquid foreign assets which could be used to replenish the central bank reserves when authorities decide that is necessary.