Qatari riyal


The Qatari riyal (sign: QR or ر.ق; code: QAR) is the currency of the State of Qatar. It is divided into 100 dirhams (Arabic: درهم) and is abbreviated as either QR (English) or ر.ق (Arabic).

Qatari riyal
ريال قطري (Arabic)
ISO 4217
CodeQAR
Exponent2
Denominations
Subunit
1100dirham
SymbolQR or ر.ق
Banknotes1, 5, 10, 50, 100, 500 riyals
Coins1, 5, 10, 25, 50 dirhams
Demographics
User(s) Qatar
Issuance
Central bankQatar Central Bank
Websitewww.qcb.gov.qa
Valuation
Inflation-2.8%
SourceThe World Factbook, 2011 est.
Pegged withU.S. dollar (USD)
$1 USD = 3.64 QR

History

Until 1966, Qatar used the Indian rupee as its currency, in the form of Gulf rupees. When India devalued the rupee in 1966, Qatar, along with the other states using the Gulf rupee, chose to introduce its own currency.[1]

Before doing so, Qatar briefly adopted the Saudi riyal, then introduced the Qatar and Dubai riyal following the signing of the Qatar-Dubai Currency Agreement on 21 March 1966.[2] The Saudi riyal was worth 1.065 Gulf rupees, whilst the Qatar and Dubai riyal was equal to the Gulf rupee prior to its devaluation.

Following Dubai's entry into the United Arab Emirates, Qatar began issuing the Qatari riyal separate from Dubai on 19 May 1973. The old notes continued to circulate in parallel for 90 days, at which time they were withdrawn.[3]

For a wider history surrounding currency in the region, see the history of British currency in the Middle East.

Coins

In 1966, coins were introduced in the name of Qatar and Dubai for 1, 5, 10, 25 and 50 dirhams. In 1973, a new series of coins was introduced in the same sizes and compositions as the earlier pieces but in the name of Qatar only.[4]

Hamad coins (Qatar)
ImageValueDiameterMassCompositionEdgeObverseReverseYear of
ObverseReverse first mintingwithdrawal
1 dirham15 mm1.4 gCopper-clad SteelSmoothDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2000
5 dirhams22 mm2.83 gCopper-clad SteelSmoothDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2000
10 dirhams27 mm7.52 gCopper-clad SteelSmoothDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2000
25 dirhams20 mm3.2 gNickel-clad SteelReededDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2000
50 dirhams25 mm5.8 gNickel-clad SteelReededDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2000
Tamim coins (Qatar)
ImageValueDiameterMassCompositionEdgeObverseReverseYear of
ObverseReverse first mintingwithdrawal
1 dirham15 mm1.4 gCopper-clad SteelSmoothDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2016
5 dirhams22 mm2.83 gCopper-clad SteelSmoothDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2016
10 dirhams27 mm7.52 gCopper-clad SteelSmoothDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2016
25 dirhams20 mm3.2 gNickel-clad SteelReededDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2016
50 dirhams25 mm5.8 gNickel-clad SteelReededDates on top. Emblem of Qatar consisting of two crossed bent swords, and between them a sailing ship (dhow) sailing on waves beside an island with two palm treesValue2016

Banknotes

On September 18, 1966, the Qatar & Dubai Currency Board introduced notes for 1, 5, 10, 25, 50 and 100 riyals. These were replaced on 19 May 1973 by notes of the Qatar Monetary Agency in denominations of 1, 5, 10, 100, and 500 riyals; a 50-riyal note was issued in 1976. The Qatar Central Bank was established by decree 15 on 5 August 1973. All coins and notes issued by the Qatar Monetary Agency became the property of the bank but continued to circulate for several years.[5]

Current Series
ImageValueMain ColourDescription
ObverseReverseObverseReverse
1 riyal Grey Coat of arms of Qatar Native birds
5 riyals Green National Museum, Native animals
10 riyals Orange Sand dunes
50 riyals Pink The Pearl Oyster Monument and a view of the Qatar Central Bank building
100 riyals Green & Gold Old Mosque and Al-Shaqab Institute
500 riyals Blue Falcon, with a view of the Amiri Diwan of Qatar which serves as the government building for the State of Qatar

Fixed exchange rate

The Qatari riyal is pegged to the US dollar at a fixed exchange rate of $1 USD = 3.64 QR. This rate was enshrined into Qatari law by Royal Decree No.34 of 2001, signed by Hamad bin Khalifa Al Thani, Emir of Qatar, on 9 July 2001.

Article (1) states that the Qatari riyal exchange rate shall be pegged against the US dollar at 3.64, and sets upper and lower limits of 3.6415 QR and 3.6385 QR for the Qatar Central Bank's purchase and sale of dollars with banks operating in Qatar. Article (2) provides the Qatar Central Bank with the authority to determine the volume and the time of sale of US dollars and the associated conditions of such sales and payments. Article (3) cancels the earlier Royal Decree No.60 of 1975, by which the riyal was officially pegged to the IMF's special drawing rights (SDRs).[6][7][8]

Current QAR exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD INR KRW
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD INR KRW
From XE: AUD CAD CHF EUR GBP HKD JPY USD INR KRW
From OANDA: AUD CAD CHF EUR GBP HKD JPY USD INR KRW
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD INR KRW

Note: Rates obtained from these websites may contradict with pegged rate mentioned above

Effect of the 2017 Qatar diplomatic crisis

In response to the 2017 Qatar diplomatic crisis, banks in the countries blockading Qatar had to stop trading with Qatari banks. This led to a fall in liquidity offshore and a move away from the fixed exchange rate outside of Qatar, with up to 3.81 riyals being required to buy 1 US dollar in late June 2017,[9] a situation that continued until December 2017.[10][11]

This also led to cessation of trading of Qatari banknotes outside of Qatar with certain banks in certain countries such as the UK.[12]

Within Qatar itself, however, the Central Bank of Qatar has continued to buy and sell US dollars at the fixed rate.

See also

References

  1. "Monetary System in Qatar Historical Background".
  2. "The Bank Notes of the Qatar and Dubai Currency Board". islamicbanknotes.com. Retrieved 20 April 2018.
  3. Linzmayer, Owen (2012). "Qatar & Dubai". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
  4. See these coins at
  5. Linzmayer, Owen (2012). "Qatar". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
  6. Qatar Central Bank: Instructions to Banks, Volume 1
  7. "Qatar Central Bank - Exchange Rate Policy". www.qcb.gov.qa. Retrieved 20 April 2018.
  8. Schuler, Kurt (29 February 2004). "Tables of modern monetary history: Asia". Archived from the original on February 19, 2007.
  9. Torchia, Andrew; Arnold, Tom; Carvalho, Stanley (28 June 2017). "Qatar riyal FX market in chaos but bankers believe peg still solid". CNBC. Archived from the original on 2017-11-07. Retrieved 20 April 2018.
  10. "Qatar's Key Concern Remains on Funding Side". financialtribune.com. 22 October 2017. Retrieved 20 April 2018.
  11. "XE: USD / QAR Currency Chart. US Dollar to Qatari Riyal Rates". www.xe.com. Retrieved 20 April 2018.
  12. Editorial, Reuters. "Several UK banks stop selling Qatar riyals as diplomatic crisis mounts". reuters.com. Retrieved 20 April 2018.