Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
That question is key to Qatar's future as some bankers and hedge funds speculate the super-rich state's vast financial reserves may not be liquid enough to defend its currency in the long term.Some are domestic assets which could be hard to sell to foreign buyers in crisis conditions, while another portion is tied up in "illiquid" foreign assets that could not be sold quickly to raise cash.That implies the QIA may need to liquidate a small fraction of its assets fairly soon to rebuild central bank reserves.Earlier this year the QIA transferred over $30 billion of domestic equity holdings to the finance ministry.Krisjanis Krustins, associate director at Fitch Ratings, said Fitch's impression from meetings with Qatari authorities was that only 10-15 percent, or at most 20 percent, of QIA money was in illiquid assets such as private equity or real estate.U.S. Treasury data shows Qatar's holdings of long-term U.S. securities such as Treasury bonds at $8.6 billion in April, or under 3 percent of QIA assets.
FOLLOW THIS ARTICLE