The Governor of Qatar Central Bank (QCB), Sheikh Bandar bin Mohammed bin Saud Al Thani, said that pegging the Qatari riyal to the dollar was appropriate for the country’s financial and economic situation.
Speaking at a session titled, “What is Next for Inflation?” of the Qatar Economic Forum on Wednesday, the QCB governor stressed that there was no urgent need to change this policy, noting that the impact of inflation affected many countries of the world, as it reached highest levels in decades.
The governor, however, said that the past three months witnessed a decline in inflation in several countries, adding that central banks around the world had no choice but to curb inflation levels.
“We must ensure a balance between price stability, growth and financial stability,” he emphasized.
Regarding Qatar’s decision to raise the interest rate, Sheikh Bandar said: “We take the appropriate decision for our economy, and sometimes we maintain our interest rate [stable].”
The exchange rate of the US dollar against the Qatari riyal is 3.640 riyals, according to the website of the Qatar Central Bank.
The governor pointed out that Qatar’s monetary policy was able to interact positively with the tightening policy adopted by the US Federal Reserve during 2022.
At the beginning of May, the QCB raised the interest rate by 25 basis points, bringing the deposit rate to 5.5 percent, lending to 6 percent, and the repo rate to 5.75 percent.
