Qatar confirms currency stability, guarantees all exchange transactions

Qatar confirms currency stability, guarantees all exchange transactions
Qatar’s Central Bank (QCB) said on Friday it would guarantee all exchange transactions for customers inside and outside the country without delay, dismissing media reports that some exchange companies have stopped buying the riyal.

"Qatari riyal's exchange rate is absolutely stable against the US dollar, and its exchangeability inside and outside Qatar is guaranteed at any time at the official price," QCB said as cited by Reuters.

According to the regulator, all banks and foreign exchange companies are committed to trading the riyal as usual, and the reports circulating across different media about the trading and exchange rate of the Qatari currency “are baseless.”

QCB added that riyal remains guaranteed by the International Monetary Fund's recognition as an official currency along with Qatar's vast cash reserves.

The statement follows this week’s media reports that many banks and foreign exchange companies outside of Qatar were refusing to buy Qatari riyals.

Exchange company Travelex said on Thursday it has resumed purchasing the Qatari riyal globally after a short suspension "due to business challenges.”

International rating agencies lowered Qatar’s credit rating this month and put it on “negative watch” as a result of an ongoing Gulf dispute.

The riyal has been increasingly volatile since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar on June 5, accusing the country of backing terrorist groups.

Doha has vehemently denied the charge and is considering appealing to the World Trade Organization against the blockade.

The Qatari currency which is pegged to the US dollar rose to $3.73 on Friday after dipping to $3.81 this week which is the lowest level in a decade.