Cars drive past the building of Qatar Central Bank in Doha, Qatar, June 6, 2017. REUTERS/Naseem Zeitoon
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Some Qatari banks are boosting interest rates on dollar deposits to shore up liquidity as a Saudi-led campaign to isolate the gas-rich Arab state intensifies, people familiar with the matter said. The lenders are offering a premium of as much as 100 basis points over the London interbank offered rate to attract dollars from regional banks, two of the people said, asking not to be named because the matter is sensitive. At the end of April, Qatar's banks held 21.4 percent of their customer deposits in foreign currency, according to central bank data. Non-resident deposits made up 24 percent of the overall deposits of 781 billion riyals ($213 billion), the data shows.The ratings agency ran two hypothetical scenarios of capital flight, and concluded that Qatar's lenders could survive the withdrawal of all Gulf deposits plus a quarter of the remaining foreign funds the banks keep.
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