'Right To Diversification Across Assets And Economies Important For Investment'

(MENAFN- The Peninsula) joel johnson | The Peninsula

Qatar Central Bank (QCB) Governor and Qatar Investment Authority (QIA) Chairman H E Shiekh Bandar bin Mohammed bin Saoud Al Thani said that there is always an investment opportunity in the region but must be done with the right to diligence and diversification across assets and economies in addition to the right assessments for risks and returns despite the challenging environment.

During a Qatar Economic Forum discussion held yesterday, Shiekh Bandar stressed restoring price and financial stability along with Nouriel Roubini, Professor Emeritus of Economics & International Business, New York University's Stern School of Business. The event was moderated by Stephanie Flanders, Head of Economics & Government at Bloomberg.

He said said:“When we go to any investment, we do the right diligence and we make the right assessment for risks and return for that investment and we put all the scenarios in place. So you have a process before you do an investment decision. If you have done it properly, then you will be in better shape. We have a large portfolio in QIA and are very well diversified across assets and also across regions. We have a very limited exposure to affective assets so we are doing well.”

Amid the rising inflation rates in the US, the Governor elucidated that“We are taking our decisions accordingly to US federal reserve's decision. Our decision on what we take and what's appropriate for the economy so there was no doubt that we will increase our interest rate during that time. As you know the US raised their interest rate and sometimes we have held our interest rate during the increase.”

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He noted that“We have picked the dollar and we believe it's appropriate for our economy and it's been very efficient and effective. As well as the IMF and the reports have mentioned and highlighted that the pick is appropriate for the GCC countries. Our main revenue is in dollars and our main exporter is energy and revenue is in dollars so it's very appropriate to keep our economies in US dollars. We do believe that the US dollar will remain as a primary currency for international trade settlement due to global acceptance and stability backed by the strong economy in the US.”

“Each country has its own sovereign decision. We have heard from time to time and in the news that two countries come together and sign an agreement to exchange trade in the local currency and this I believe is a sovereign decision. For us, we still have our pick with the dollar is appropriate for our economy and we don't see any immediate need to change that policy since it's very effective for our economy,” he added.


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