Qatar Central Bank is allowing banks to offer borrowers payment deferrals and slashing reserve requirements while pumping unlimited repo liquidity into the banking system. This aggressive response comes as Gulf policymakers scramble to mitigate economic fallout from the fifth-week Iran war. The measures aim to prevent loan defaults and maintain financial stability in a region facing oil price volatility and disrupted trade routes. Loan deferrals will give struggling businesses and households temporary relief, while reduced reserves free up capital for lending. Repo liquidity injections will ensure banks have sufficient funds to meet demands without raising borrowing costs.

These steps signal Qatar's urgent effort to shield its economy from geopolitical shocks.