Mubasher: The Institute of international Finance (IIF) expected that the decline in foreign deposits in Qatar would have a minimal impact, as the government supporting the liquidity levels in banks.

Foreign deposits declined from $51 billion, which comprises 24.2% of the total deposits in the Qatari banks in May, to $43 billion in July, according to IIF report.

The Qatari economy continues to adjust to the effects of sanctions by some Arab countries, the report added.

Qatar Central Bank (QCB) pumped liquidity to face the drop, as Qatar supported its economy with $38.5 billion or 23% of its gross domestic product (GDP) to face the economic, financial and social consequences of the sanctions.

Given the large public foreign assets, at $300 billion in Qatari Sovereign Wealth Fund, Qatar is in a strong position to meet domestic funding requirements, the report added.

The sanctions, imposed by four Arab countries in 5 June, had a negative impact on the capital influx and the volume of trade with these countries.

Imports declined 30% year-on-year in the first seven months of 2017.

Qatar continues diversifying the sources of capital goods and food imports, as well as establishing alternative trade routes, IIF added.