The Qatar central bank has invited banks to bid in a 1.5 billion riyal ($412 million) Treasury bill auction to be held on Monday, a central bank official said.
“The auction is for 1.5 billion but it depends on liquidity in the market. If there is a demand for more than 1.5 billion, we might go up – we have to study the bids,” said Adel Bakr, assistant director for public debt and banking affairs at the central bank.
“This auction it’s not a necessity, it’s for the banks’ sake. We issue this short instrument for liquidity purposes.”
Bakr did not provide more details on the auction. Banking sources said the bills would be sold in three-, six- and nine-month tranches, with results to be revealed on Tuesday.
The central bank has cancelled previous monthly T-bill auctions this year after banks bid at high rates following a tightening of liquidity due to low oil and gas prices.