Depreciating dollar could pose challenge: QCB chief
DOHA: Qatar is closely following the developments in the US and hopes that a deal would eventually be done to raise the debt ceiling by the deadline of August 2.
The governor of the Qatar Central Bank (QCB), H E Sheikh Abdullah bin Saud Al Thani, said that inflation was currently under control in the country, but a depreciating dollar could pose a challenge.
The Qatari economy is immune to any adversity the US debt crisis might cause since being the largest economy of the world, many countries can be affected if the US fails to reach a deal on the debt ceiling by August 2.
Qatar is unlikely to be affected because it has been witnessing high economic growth. The growth expected by the International Monetary Fund (IMF) this year is 18 percent, said the QCB chief.
The Arab Monetary Fund (AMF), on the other hand, expects the GDP growth to be 20 percent this year.
The governor told a local Arabic daily in an interview that he was quite hopeful that the US Congress could approve the proposal to raise the debt.
Failure of the deal could devastate the world economy and major global financial institutions, the governor said.
© The Peninsula 2011