Economics
What's a Qatari Riyal Worth? Depends on What It's Needed For
- Qatari banks are financing economic activity at official rate
- Parallel rate is emerging for certain financial trades
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As Qatar’s showdown with the Saudi-led alliance enters a second month, its currency peg is still intact -- though not everyone can use it.
Qatari banks are providing enough cash to meet domestic business needs at 3.64 riyals per dollar -- within the regulator’s preferred range -- while turning away investors financing trades deemed speculative, according to five people with knowledge of the matter. That’s forcing such transactions offshore, where lenders are trading the riyal at weaker rates, the people said, on condition of anonymity because they’re not authorized to speak publicly on the issue.