According the Qatari central bank governor, Sheikh Abdullah bin Saud al-Thani, Qatar will keep its currency pegged to the dollar at the same rate for now. The oil producer is grappling with near-record level inflation and speculators waiting for the QAR to apprectiate.
”The view of the Central Bank of Qatar until the moment is: there is no change in policy about depegging from the dollar… We are still pegging the riyal against the dollar and we will continue at the moment… I want to emphasise that we are still fixed against the dollar and we will continue pegging our currency against the dollar at the moment…”- Sheikh Abdullah bin Saud al-Thani, Qatari Central Bank Governor
For the past months the Qatari prime minister, finance minister and an economic advisor to the Emir have all spoken in favor of currency reform mainly to fight a 13.74% reported in 4th Quarter 2007. Qatar said this month it would freeze rents for two years on many housing contracts and the country is also considering introducing subsidies on some commodities to fight inflation.
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