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Doha’s Losses Worsen - ASHARQ AL-AWSAT English Archive
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Riyadh- World agencies published on Sunday new economic reports that warn of the increased dangers on the Qatari economy after several Gulf and Arab states severed diplomatic ties with Doha.

Reports have revealed the frustration of Qatari investors in shares, bonds and currencies.

In this regard, Bloomberg said in a report investors in Qatari stocks, bonds and currency forwards have been saddled with losses since last week.

Its most liquid bonds tumbled as the sovereign rating was cut and bets against Qatar’s currency surged.

The same report said that a pick-up in foreign investment outflows would drain foreign-exchange reserves and weaken Qatar’s external liquidity position.

It added that the interest rate in Qatar has jumped to its highest level in almost seven years after hiking nine points.

Bloomberg pointed out that Moody’s Investors Service has warned that credit strength will be negatively impacted primarily on higher funding costs.

Further, Reuters reported on Sunday that the shortage of US dollars hit money exchange houses in Qatar, as an indicator on the huge difficulties limiting the Qatari financial sector’s capabilities to survive against influences of diplomatic boycotting.

In the same context, Qatar stock exchange index dropped 1.9 percent in the first weekly sessions on Sunday, closing at 9,060 points – a loss of 178 points.

These updates come as Qatar will continue to feel the economic effects of the decision of several Gulf and Arab countries to cut diplomatic relations with it.