Yesterday, the Qatar Central Bank issued treasury bills worth one billion riyals for the month of March, for one week, due on the 23rd of it, with a return rate of 5.0050 percent.
The value of the treasury bills issued by the bank for a week during the month of March of this year amounted to three billion riyals.
On March 9, the Qatar Central Bank issued treasury bills and Islamic sukuk for terms of one week, one month, three, six and nine months, at a value of 3 billion riyals, indicating that the total value of bids submitted amounted to 4.58 billion riyals.
Economic and financial experts confirm that the proceeds of issuing bonds, permits and sukuk will be used to finance economic development projects, given that the state seeks to finance them from local funding sources.
They added that the new issuances represent new investment opportunities for banks operating in Qatar, as they are guaranteed by the state and do not carry any risks compared to other investments that banks have, whether at home or abroad.
Qatar Central confirms on its website that treasury bills are a tool of monetary policy aimed at supporting monetary and financial stability in Qatar, as Qatar Central works to stabilize the exchange rate of the Qatari riyal, freedom of transfer, and stability in the level of local prices, in addition to To financial stability, through managing the exchange rate policy of the Qatari riyal, implementing related operations, drawing up and managing monetary policy, following up on its implementation, evaluating its performance, issuing cash, regulating its circulation, managing public debt operations such as bonds and bills within the country, and contributing to financial stability policies. , and act as a bank for banks operating in the country, and invest the financial reserves of the bank in foreign currencies, and manage and organize payments and settlements.
Treasury bills represent a government debt instrument, issued within a period ranging from three months to a year, and are considered short-term securities. It is distinguished by its ease of disposal without the bearer suffering any losses. Because the permission is usually sold at a discount, that is, at a price less than its face value. On the maturity date, the government is obligated to pay the face value of the warrant, and the difference represents the amount of return to the investor. It also provides an appropriate return and a good investment compared to investing in foreign securities in foreign markets.
The new promissory notes represent a government debt instrument issued for a period ranging from three months to a year, and are considered short-term securities, and are characterized by ease of disposal without the bearer suffering losses, because the promissory note is usually sold at a discount, i.e. at a price less than its nominal value, and on the maturity date the government is obligated By paying the nominal value of the permission, the difference represents the amount of return to the investor. It is expected that the subscription process during December will witness a remarkable demand from banks to subscribe to the new issue, as it is a risk-free investment for banks that supports liquidity in the local market, compared to investing in foreign securities in foreign markets.
Qatar Central Controls
On the other hand, an official banking source explains the Qatar Central Bank’s controls on banks to invest in local securities, which aim to protect banks and prevent the recurrence of this problem. Where banks turn to sukuk and bonds guaranteed by the state or with a global rating from international institutions, such as Moody’s or Standard; Although the return on them may be less than others, but they are guaranteed by the governments that issue them, and the risk on them is simple.
The controls of the “Qatar Central Bank” for investing in these securities include not exceeding 30% of the bank’s capital and reserves. The investment in one entity or the fund should not exceed 5% of the bank’s capital and reserves, in addition to the total non-traded investments not exceeding 15%. As for investments in portfolios, funds and other investment products, they do not exceed 10% of the bank’s capital and reserves, and investment in one portfolio or fund should not exceed 3% of the bank’s capital and reserves.
