Qatari Riyal (QAR)

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Qatari Riyal (QAR)

Overview

The Qatari riyal (currency code QAR, abbreviation QR) is the official currency of the State of Qatar. One riyal equals 100 dirhams. All banknotes and coins are issued by the Qatar Central Bank, which manages monetary stability and maintains regulatory control over the currency.

History

  • The Qatari riyal was introduced in 1973 after Qatar began issuing its own currency following Dubai’s entry into the United Arab Emirates.
  • Before the riyal, the region used the Qatar and Dubai riyal, the Saudi riyal, and earlier the Gulf rupee and Indian rupee.

Peg to the U.S. Dollar

  • The riyal is pegged to the U.S. dollar at a fixed official rate of 1 USD = 3.64 QAR.
  • This peg is maintained within a narrow band of 3.6385–3.6415 QAR per USD and was formalized by law in 2001.
  • Pegging to the dollar helps stabilize Qatar’s economy, which is heavily dependent on oil and natural gas priced in U.S. dollars.

Denominations

  • Banknotes: 1, 5, 10, 50, 100, and 500 riyals.
  • Coins (dirhams): 1, 5, 10, 25, and 50 dirhams.

Notable Fluctuations

  • In 2017 an offshore market disruption during a diplomatic crisis produced temporary depreciation (around 3.81 QAR per USD) in some foreign markets due to a liquidity shortfall. The official peg inside Qatar remained in effect.
  • Diplomatic rifts that contributed to that crisis were later eased, with significant reconciliation agreements reached by 2021.

Practical Currency Exchange Notes

  • While the official rate is 3.64 QAR per USD, banks and exchange services typically charge fees or offer a worse effective rate (commonly 3–5% hidden in the exchange rate).
  • Example: a traveler converting $1,000 at an effective rate of 3.46 QAR/USD receives QR3,460. If they later convert QR1,500 back at an effective rate of $0.261 per QAR (reflecting fees), they receive about $391.50 instead of the theoretical $412.09 at the official rate.

Quick Facts

  • Subunit: 1 riyal = 100 dirhams
  • Peg: 1 USD = 3.64 QAR (band 3.6385–3.6415)
  • Issuing authority: Qatar Central Bank
  • Qatar’s GDP was roughly $180 billion (around 2021)

FAQ

Key Takeaways

  • The Qatari riyal is a dollar-pegged currency designed to stabilize an economy driven by oil and gas.
  • The Qatar Central Bank oversees issuance and defends the peg.
  • Travelers should expect exchange rates from providers to differ from the official peg due to fees.