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Posted On: 18 August 2013 01:22 pm
Updated On: 12 November 2020 02:13 pm

Qatar rules out change in its currency’s peg to US dollar

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Qatar has reiterated there is no going back on its riyal’s peg to the US dollar and said its currency’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. They must use the above riyal-dollar rate while converting the riyal to other currencies. Qatar Central Bank (QCB)’s banking regulator said: “The riyal’s peg to the dollar is the cornerstone of the country’s monetary policy.” The QCB reminded the local banking industry that if a bank fails to return a depositor his money for some reason, the regulator would make sure he is repaid. It 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,” said QCB. The regulations aim to help protect the rights of depositors. Banks must now play a proactive role to help the non-hydrocarbons sector. The non-energy sector must be aided to expand production base, according to QCB report. Loans to the services sector rose, by a margin of QR4.3bn ($1.18bn) in the month under review, adding up to QR42.3bn ($11.61bn). There was a slight fall of QR200m in credit given away to the real estate sector. But it continued to be the largest borrower, with total exposure to the sector being a staggering QR97bn ($26.63bn) until June. Source:Qatar Chronicle