The outflows of external funds from the country have started to show a reversal in the first quarter of 2018.

The total outflows at the end of March 31, 2018, was $10bn, compared to $22bn at the end of 2017, reported S&P Global Ratings in its ‘Europe, the Middle East, and Africa (EMEA) financial institutions monitor for Q3, 2018.’

The report said new inflows of funds to Qatar came primarily from interbank funding. The government’s injection of funds was about $42.2bn at March 31, 2018, reported The Peninsula.

Financial institutions in Europe, the Middle East, and Africa (EMEA) are operating in economic conditions that have weathered recent shocks quite well. Credit conditions still remain favorable, supported by the European Central Bank’s accommodative monetary policy, particularly in the bank market where lenders have capital to deploy.

Overall, the economy’s good momentum should help banks in EMEA maintain sound or improving balance sheets, while making some moderate progress on profitability with cost initiatives offsetting still weak revenue growth.

EMEA emerging-market economies are facing a more challenging external environment, against the backdrop of higher US rates, a stronger US dollar, and an escalation of global trade tensions.

The outlook for capital flows to emerging markets has worsened, as market expectations regarding the US economy have shifted toward stronger growth and higher inflation, and a steeper path for US rates. This also implies a stronger US dollar, at least in the short term.