Qatar central bank says QAR3bn bond offer ‘successful’

An offer of QAR3bn ($825m) of Qatar government bonds, the first domestic government bond offer this year, was successful and showed liquidity in the Qatari banking system is healthy, a central bank official told Reuters on Tuesday.

“It was a very successful auction with big demand. It shows liquidity is fine. The demand was fine from both Islamic and conventional banks,” the official said.

He did not provide further details of the sale, saying they would be announced later.

Read more: Qatar central bank offers bonds in first riyal sale this year

A reduction in state revenues due to low natural gas prices cut flows of new petrodollars into Qatar’s banking system this year, pushing money rates up sharply and causing the central bank to cancel several monthly sales of short-term bills.

Since June, however, money rates have come off their highs and liquidity has improved somewhat along with a rise in government deposits at commercial banks.