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Sanctions cut Qatar central bank's foreign reserves by $10.4 billion in June

  • Reserves hit their lowest level in at least five years.
  • Qatar's sovereign wealth fund is believed to have around $180 billion or more of liquid foreign assets.
Buildings are seen on a coast line in Doha, Qatar June 5, 2017.
Reuters
Buildings are seen on a coast line in Doha, Qatar June 5, 2017.

The Qatar central bank's net international reserves plunged by $10.4 billion in June to $24.4 billion because of economic sanctions imposed by other Arab states, central bank data showed on Sunday.

Reserves hit their lowest level in at least five years.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar on June 5, causing some banks and portfolio investment funds to pull money from the country, depleting the reserves.

However, Qatar's sovereign wealth fund is believed to have around $180 billion or more of liquid foreign assets which could be used to replenish the central bank reserves when authorities decide that is necessary.