Qatar has enough food and money, Sri Lanka expats need not panic: embassy
ECONOMYNEXT – Qatar enough financial reserves to withstand a shock, food and energy supplies are moving, ports and airports were open, and Sri Lankans in the emirate can get on with their lives, the country’s embassy in Colombo said, after several Gulf state cut air and sea links with the emirate.
"The above Diplomatic rift has not affected the normal course of life of the citizens of the State of Qatar and the residents and expatriates including Sri Lankans," the embassy said in a statement.
"The maritime ports and the airfield remains open for imports, transit, and flights to all countries except the countries that closed their borders and airspace access.
"The energy sector and economy are operating as normal and no any (sic) impact has been felt on supplies of food or other goods. Qatar is responding to the crisis by diversifying its economy even more.
"The Government of the State of Qatar is “extremely comfortable” with its financial position, with the resources to endure the pressure."
Qatar is a major natural gas supplier and it has massive investments abroad.
Qatar monetary authority is also generally not inclined to print money and along with several other Gulf states, it does not seem believe that economic activity can be boosted by monetary policy and simply keeps pace with US policy.
The Qatar riyal has weakened slightly to around 3.67 to the US dollar from 3.64. Central Banks generally weakens dollar pegs by printing money to keep interest rates down (sterilize interventions).
A central bank that does not allow domestic interest rates to rise as it spends dollar reserves to defend a currency, will experience a rapid downward spiral.