Posted on September 29, 2018

The Qatar Central Bank (QCB) has raised its deposit rate by 25 basis points (0.25 percentage point) to 2.25%, a QNA dispatch showed. The decision came after the US Federal Reserves raised its interest rates by 25 basis points on Wednesday.

The Qatari riyal has been pegged to the dollar since 1980. According to an earlier report by Fitch Solutions currency pegs to the dollar will remain in place in Qatar and four other Gulf Co-operation Council (GCC) countries over the coming decade. With hydrocarbon still accounting for an overwhelming majority of exports, de-pegging would carry limited benefits in terms of boosting external competitiveness, the Fitch Group company said. At the same time, de-pegging would have severe repercussions on investor sentiment towards the region, likely triggering sharp capital outflows, the report said.

source: Gulf Times