Qatar central bank governor sees no need to change currency peg regime

The Qatari riyal has been officially fixed at 3.64 to the dollar

  
Close-Up Of Paper Currencies. Image used for illustrative purpose.

Close-Up Of Paper Currencies. Image used for illustrative purpose.

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DUBAI- Qatar has no need to change its currency peg regime despite concerns about rising inflation, the governor of the Gulf state's central bank said on Wednesday.

"I don’t think we’ll change our regime at this moment, there is no need," Sheikh Abdullah bin Saud al-Thani said at an economic forum organised by Bloomberg.

The Qatari riyal has been officially fixed at 3.64 to the dollar since 2001.

Thani said economic recovery after the coronavirus crisis could create inflationary pressure but said this would be only temporary.

Oil prices now at over $75 a barrel were "a very good thing" for the Qatar economy, the governor said.

Qatar, a top producer of liquefied natural gas, in December projected a deficit of 34.6 billion riyals ($9.50 billion) this year but its 2021 budget was based on an oil price assumption of $40 per barrel, meaning the actual shortfall could be lower.

(Reporting by Davide Barbuscia Editing by Mark Heinrich) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))


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