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Qatari riyal's peg to dollar ‘great benefit’

DOHA, March 7, 2016

The Qatari riyal's peg to the US dollar has been of great benefit to Qatar's economy, the country's central bank governor Sheikh Abdullah bin Saud al-Thani said in an interview published on the central bank's website on Monday.

Asked by the local Lusail news website about the fluctuations of the dollar against other currencies, Sheikh Abdullah replied:

"Such concerns do not exist for us - as you know the US economy is the strongest in the world and depreciation of the dollar against some foreign currencies is usually in small percentages over a limited amount of time.

"And our long experience with the riyal peg against the dollar has proved to us that it is best for our economy to continue this peg as it has many benefits.

"This peg in recent decades has spared us many of the risks associated with exchange rates, and has contributed to a large reduction of imported inflation, which has a role in the retreat of domestic inflation."

Sheikh Abdullah also said that given expectations for continued strong growth of Qatar's non-oil economy, commercial banks' business in 2016 was likely to be similar to 2015.

"Keeping in mind the increase in the high level of capital, and a reduction in non-performing loans, the banks have great space to withstand any additional pressures in the system if they appear," he said. – Reuters

Tags: Qatar | dollar peg | Rial |

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