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Exchange Rate Policy

QCB has adopted the exchange rate policy of its predecessor, Qatar Monetary Agency, through fixing the value of the Qatari Riyal (QR) against the US dollar (USD) at a rate of QR 3.64 per USD as a nominal anchor for its monetary policy. The peg has always been highly credible. The targeted peg was officially authorized by Amiri Decree No. 34 of 2001 issued in July, substituting the de jure exchange rate policy of pegging to the SDR that was in effect since 1975.

To date, QCB has continued implementing its exchange rate policy of hard pegging to the USD at an average price of QR 3.64 per USD. Commercial banks domestically trade the USD on basis of price determined by QCB. Nonetheless, commercial banks add a small margin of 0.24% to the QCB fixed price when dealing with the public. Otherwise, commercial banks trade other currencies based on QCB determined exchange rate of QR against the USD and market determined exchange rate of a given currency against the USD. Table 1, provides a historical summary of the exchange rate regime implemented in Qatar. For further discussion, see Exchange Rate Policy in Qatar under Publications.

Chronology of QR Exchange Rate

Period Currency in Circulation Peg Exchange Rate QR per Sterling Pound/SDR/USD
Prior to June 1966 Indian Rupee and Gulf Rupee Linked to Sterling Pound
June-September 1966 Saudi Riyal
18th September 1966-November 1967 Qatar-Dubai Riyal Sterling† Pound 13.3333
November 1967-August 1971 Qatar-Dubai Riyal Sterling Pound 11.7647
23rd August 1971 Qatar-Dubai Riyal USD Par value against gold at 0.186621 gms of fine gold
19th May 1973-March 1975†† Qatari Riyal USD Par value against gold at 0.186621 gms of fine gold
March 1975-14th Jan 1976††† Qatari Riyal SDR 4.7619±2.25%
15th Jan 1976- July 2001 Qatari Riyal SDR 4.7619±7.25%
From July 2001 till date†††† Qatari Riyal USD 3.64

† The par value of QDR was fixed at 0.186621 grams of fine gold.

†† Decree No. 72 of the year 1974; pegged QR to USD with retrospective effect from 19th May 1971.

††† As per Decree No. 60 of the year 1975.

†††† As per Decree No. 34 of the year 2001.