Policy Framework

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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.

Table 1

† 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.