The scandal of banks having manipulated the Libor global interest rate benchmark is taking a toll on confidence in the markets, the International Monetary Fund said.
“The most serious consequence of this scandal, which is under investigation, is that it undermines the certainty and the trust that markets have in benchmarks,” said Jose Vinals, director of the IMF’s Monetary and Capital Markets Department.
“This is why it’s very important that the efforts which are currently under way and which are dealing with the regulation of financial institutions be completed... (and) that these regulations are implemented without delay,” Vinals told a press conference.
Major banks are under investigation in the US, Britain, Canada, Japan, the European Union and elsewhere for having allegedly rigged the setting of Libor and other essential interbank lending rate averages, which are used as key referents for commercial and retail interest rates in business around the world.
Barclays Bank has already been fined $452 million by US and British regulators for fixing Libor, and at least in the US a number of lawsuits have been filed over claimed losses tied to the rate fixing.
In a related development, a report commissioned by the G20 group of the world’s biggest economies warned that oil prices could be vulnerable to a Libor-style rigging scandal.
According to the International Organization of Securities Commissions (IOSCO), the current system of oil price reporting is “susceptible to manipulation or distortion.”
Benchmark prices are compiled by price reporting agencies. The biggest, Platts, says “there is absolutely no similarity” between Libor and oil.
Libor scandal undermines market confidence
Libor scandal undermines market confidence
Canada deepens investment ties with Qatar, expands economic engagement with Egypt
RIYADH: Canada and Qatar moved to formalize a more in-depth and investment-focused partnership during an official visit by the country’s Prime Minister Mark Carney to Doha.
The visit was the first by a sitting Canadian leader, with both governments agreeing to elevate bilateral ties through new economic, security, and financial frameworks.
At the center of the meeting was an agreement to launch a foreign ministers–level strategic dialogue and advance a pipeline of trade, investment, and defense cooperation initiatives aligned with Canada’s diversification priorities and Qatar National Vision 2030.
Several memorandums of understanding were signed, including accords on joint economic cooperation, information technology, and security collaboration for the 2026 FIFA World Cup, which Canada will co-host.
The visit underscored the rapid expansion of Qatar–Canada relations, which have gained momentum following high-level exchanges in recent years, including a 2024 visit by Sheikh Tamim bin Hamad Al-Thani to Ottawa.
Both sides emphasized trade and investment as a central pillar of the relationship, with Qatar committing to significant strategic investments in Canadian nation-building projects and the North American nation pledging to send a delegation of investors, including major pension funds, to explore opportunities in Qatar.
“Qatar is an effective, expansive, and increasing diplomatic force in the world today. They are a critical partner to Canada in many shared pursuits of peace and stability, from Ukraine to the Middle East,” Carney said.
“It is a relationship forged over many years by profound acts of friendship, including the Qataris’ effort to evacuate more than 200 Canadians from Afghanistan in 2021. Now we’re elevating our relationship — with an ambitious, new strategic partnership across trade, commerce, investment, AI, and defense — to deliver greater stability, security, and prosperity for our peoples,” he added.
As part of the economic agenda, the two governments agreed to conclude negotiations on a Foreign Investment Promotion and Protection Agreement by summer 2026 and to begin talks on a Double Taxation Agreement.
They also committed to expanding bilateral air services and establishing a Joint Economic Commission to support cooperation across sectors, including mining, agriculture, telecommunications, transportation, and science.
Financial cooperation featured prominently alongside the diplomatic talks.
Sheikh Bandar bin Mohammed bin Saoud Al-Thani, governor of the Qatar Central Bank and chairman of the Qatar Investment Authority, met with Canada’s Finance Minister Francois-Philippe Champagne to discuss cooperation in banking and finance and ways to deepen institutional collaboration.
Separately, Canada’s economic engagement in the region extended to Egypt, where Cairo’s Minister of Foreign Affairs, Immigration, and Egyptian Expatriates Affairs, Badr Abdelatty, met with a delegation of business leaders from the North American country.
The talks focused on strengthening trade and investment ties, with Egyptian officials encouraging Canadian companies to expand investments in energy, agriculture, and water resources.
According to Egypt’s Foreign Ministry, Abdelatty highlighted recent economic and financial reforms aimed at improving the investment climate and reaffirmed government support for the Egyptian-Canadian Business Council in attracting Canadian capital and boosting Egyptian exports.
The discussions were built on outcomes from political consultations held in April, which included an Egyptian business delegation’s visit to Ottawa.
