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DUBAI: Qatar’s Central Bank yesterday issued QR1bn of local currency sukuk and QR3bn of local currency conventional bonds, as part of an adjustment of monetary policy and in order to help commercial banks meet Basel III liquidity requirements.
Local currency debt will be issued every quarter, half with three-year maturities and half with five-year, the central bank said in a statement. It did not give specific dates or sizes for future issues, saying they would be announced later.
“The aim of issuing these bonds is to develop monetary policy and the implementation of a mechanism of coordination between monetary and fiscal policy and support the strength of the banking system and financial and market tools,” it said. A senior commercial banker in Qatar said yesterday’s issuance was allocated directly to local banks. Pricing was not immediately known.
In January, the International Monetary Fund’s mission chief for Qatar told Reuters that authorities planned debt issues to build a domestic sovereign yield curve, as part of the country’s efforts to develop a local currency debt market. Reuters