DUBAI Jan 13 Qatar's central bank plans to
issue on Thursday conventional and Islamic government bonds
worth a combined 24 billion riyals ($6.6 billion), it said on
Monday, a much larger amount than it has offered in past
quarterly debt auctions.
This week's local currency debt will be sold in three- and
five-year tranches. The conventional bonds will be worth 13
billion riyals, while the rest of the issuance will be in the
form of sukuk, the central bank said on its website.
The large issue is designed to replace part of an even
bigger issue of 50 billion riyals worth of three-year government
bonds that were issued in January 2011, as part of the central
bank's efforts to manage loose money market liquidity.
Last March, the central bank launched quarterly bond sales
worth a total of 4 billion riyals, allocated directly to banks.
It has also conducted monthly auctions of 91-, 182- and
273-day T-bills since 2011, consistently draining 4 billion
riyals despite occasional build-ups of excess liquidity as well
as a recent fall in demand for the bills linked to geopolitical
tensions over the civil war in Syria.
Qatar's new finance minister Ali Sherif al-Emadi told
Reuters in December that volumes drained from the market through
local currency debt issues might be changed flexibly in coming
The world's top liquefied natural gas exporter may need more
active management of money market liquidity in coming years as
it plans to spend some $140 billion on infrastructure building,
partly in preparation to host the 2022 World Cup soccer
The International Monetary Fund has said Qatar's central
bank needs to start managing liquidity fluctuations more finely
through more flexible open market operations.