Qatar Central Bank: Riyal to USD peg to remain
Qatar has reiterated there is no going back on its currency’s peg to the US dollar and said the riyal’s rate to the greenback is to be maintained at QR3.64.
Local banks and exchange houses involved in foreign exchange dealings must use this rate with a margin of 0.24 percent.
While converting the riyal to other currencies, they must use the above riyal-dollar rate as the basis of those conversions.
“The riyal’s peg to the dollar is the cornerstone of the country’s monetary policy,” said banking regulator, Qatar Central Bank (QCB).
The QCB has reminded the local banking industry that their deposits with it are a guarantee that depositors’ rights will be protected in the eventuality of default.
In other words, if a bank for some reason fails to return a depositor his money, the regulator would make sure he is repaid.
The QCB has also warned banks against exposure to speculative activities in stock trading and real estate transactions.
“We have banned lending to these two speculative activities, as also to stock trading even while it might not involve speculation, and put regulations in place in this regard,” the central bank said.
Read more: The Peninsula
Pic: Eszter Hargittai
Good, but if the Riyal is revalued against the fixed parity (existing 1 = 3.64) of US Dollar, it may bring in several advantages to the businesses and local consumers.