Qatar Says Committed to Official FX Rate After MSCI Proposal - Bloomberg

Qatar Says Committed to Official FX Rate After MSCI Proposal - Bloomberg:

"Qatar’s central bank said it will honor commitments to provide dollars to local and foreign investors at the official exchange rate, describing a proposal by index provider MSCI Inc. to use the offshore rate to value the country’s stocks as unjustified. “There are no restrictions on any banking transactions, including transfers,” the central bank said in an emailed response to questions on Thursday. The offshore rate “is not reflective of the Qatari market fundamentals, and all banks in Qatar execute transactions using the on-shore rate,” it said. MSCI, whose gauges guide the allocation of about $11 trillion in assets, is consulting investors on the proposal after complaints that a boycott of Qatar by four Arab countries was making access to the official exchange rate difficult. The central bank said it “has sufficient foreign reserves that can cover all investors’ requirements.”"



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