DEFINITION of QAR (Qatari Riyal)
The term QAR is the currency abbreviation for the Qatari riyal, the currency for Qatar, an Arab emirate located along the coast of the Arabian Peninsula. The Qatari riyal is made up of 100 dirham and is often presented with the symbol QR in English.
All Qatar notes and coins are the property of the Qatar Central Bank and are prepared by the Qatar Monetary Agency.
BREAKING DOWN QAR (Qatari Riyal)
The Qatari riyal replaced the Qatar and Dubai riyal in 1973, when Dubai entered into the United Arab Emirates. At this time, Qatar began to issue its riyal separately. The joint currency came into force in 1966, at which time the previous currency, the Indian rupee, was replaced due to India's devaluation of its currency.
The riyal was pegged to the U.S. dollar in 1980 at a rate of $1 USD = 3.64 riyal, and the peg became official in 2001. Because Qatar's economy is heavily dependent on commodities such as petroleum and natural gas, the pegging of its currency reduces any potential economic shocks because these commodity prices are denominated in U.S. dollars.
However, in 2017, the value of the riyal shifted in the offshore market after some banks ceased dealing with Qatari banks, which created a liquidity shortfall, pushing the value of the riyal to 3.81 is some foreign markets.