Qatar’s money supply in June was down 4.5 per cent on the same month in 2008, making it the third consecutive decline, according to figures from Qatar Central Bank.

The figures showed that in addition to M2 money supply decreasing, a measure of savings and deposits and cash in circulation, M1 money supply, which includes all funds readily available for spending, fell by 23 per cent.

The figures indicate that inflation in Qatar, which fell 0.79 per cent in June, will continue to drop.

Total private sector credit has also fallen 2.33 per cent in June from May. The international reserves of the central bank rose 4.8 per cent in June.