QAR - Qatari Riyal

Overview of the Qatari Riyal QAR

The Qatari Riyal is known for its stability and strong value, ranking among the higher-value currencies on the global foreign exchange market. The currency is issued and regulated by the Central Bank of Qatar, which ensures its role in the economy, supporting both domestic transactions and trade.

While the QAR is not widely traded internationally compared to other major currencies, it plays a crucial role in the Gulf Cooperation Council (GCC) region, reflecting the country's economic strength, largely driven by its vast natural gas reserves and strong financial sector.

History of the Qatari Riyal (QAR)

On May 19, 1973, the Qatari Riyal was officially issued as the country's own currency. The QAR has gone through a period of historical changes.

Before 1966, Qatar used the Indian Rupee as its official currency. However, after India devalued the Rupee, Qatar and other countries in the region decided to issue their own currency.

Before having its own currency, Qatar temporarily used the Saudi Riyal. On March 21, 1966, Qatar signed the Qatar-Dubai Currency Agreement and issued the Qatari and Dubai Riyals. The value of these Riyals was equal to the Gulf Rupee. However, the Saudi Riyal was valued higher than the Gulf Rupee.

The Qatar and Dubai Riyals were pegged to the British Pound at a rate of one shilling and sixpence (1s. 6d.) per Riyal. In 1967, after the British Pound devalued, this exchange rate changed to one shilling and ninepence (1s. 9d.), but the value of the Riyal remained linked to gold.

After Dubai joined the United Arab Emirates, Qatar officially issued its separate Qatari Riyal on May 19, 1973. The old Qatari and Dubai Riyal notes remained in circulation for 90 days before being completely withdrawn.

Qatari Riyal denominations

Currently, Qatar circulates banknotes and coins with the following denominations:

Qatari Riyal Banknotes

• QR 1: Doha Corniche skyline on the front, Qatar National Museum on the back.

• QR 5: Katara Cultural Village on the front, traditional Qatari dhow boat on the back.

• QR 10: Qatar University on the front, falcon on the back.

• QR 50: Qatar National Convention Centre on the front, Al Zubara Fort on the back.

• QR 100: Traditional Qatari architecture on the front, Qatar Petroleum headquarters on the back.

• QR 200: Qatar skyline on the front, Qatari flag on the back.

• QR 500: Qatar Financial Centre on the front, Qatar National Library on the back.

• QR 22 (commemorative issue)

These banknotes are used for everyday transactions and reflect Qatar’s economic needs. Each denomination features distinct designs with cultural and historical significance.

Qatari Riyal Coins 

• Commonly used: 25 dirhams, 50 dirhams

• Rarely used: 1 dirham, 5 dirhams, 10 dirhams

These denominations support daily transactions and reflect the needs of the people in Qatar for daily life and business activities.

Exchange Rate of the Qatari Riyal (QAR)

Currently, the exchange rate of the Qatari Riyal (QAR) against several foreign currencies is as follows:

• 1 QAR = 0.2747 USD (US Dollar)

• 1 QAR = 0.2549 EUR (Euro)

• 1 QAR = 0.2248 GBP (British Pound)

• 1 QAR = 22.83 INR (Indian Rupee)

The QAR has a lower exchange rate compared to major currencies like USD, EUR, and GBP, but is relatively stronger when compared to many Asian currencies. This reflects Qatar's strong economy within the Asian region.

Factors Affecting the Value of the Qatari Riyal (QAR)

The Qatari Riyal (QAR) has a lower value compared to the US Dollar (USD) but is stronger than many currencies in the Asian region. This is mainly due to the following factors:

Pegging the Exchange Rate to the US Dollar

The Qatari Riyal is pegged to the US Dollar, which helps stabilize its value amid economic fluctuations. As a result, the value of the QAR cannot exceed that of the USD. However, this policy also helps maintain the value of the QAR compared to other currencies in the Asian region.

Qatar's Economy Driven by Oil and Gas

Qatar’s economy is heavily dependent on its natural resources, particularly oil and natural gas. This contributes to the value and potential for strong appreciation of the QAR, especially compared to less developed countries in Asia.

However, compared to the US, the Euro, or the UK, the value of the QAR is still influenced by factors such as the scale of the economy. While the US has the largest economy in the world and the USD is widely used globally, it is natural that the QAR holds a lower value.

While the Qatari Riyal (QAR) is lower in value than the USD, it is stronger than many currencies from less developed economies in Asia, due to Qatar's strong economy based on oil and gas and its stable exchange rate policy.