What is Qatar's national currency?

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Qatar's national currency is the Qatari riyal (QR), often abbreviated as QAR. It is the official currency of the State of Qatar, a small but wealthy country located on the northeastern coast of the Arabian Peninsula. The Qatari riyal is subdivided into 100 dirhams (not to be confused with the dirham used in the United Arab Emirates), though dirhams are not commonly used in everyday transactions.

History and Background
The Qatari riyal was introduced in 1966, replacing the Gulf Qatar Phone Numbers List rupee at par. The Gulf rupee was itself tied to the Indian rupee and was used in the Gulf region before the introduction of the riyal. Qatar, which had been under British influence for much of the 20th century, initially used the Indian rupee and then the Gulf rupee as a medium of exchange. With the establishment of the Qatari riyal, the country moved toward greater monetary independence and developed its own financial identity.

Initially pegged to the British pound, the Qatari riyal's value has been tied to the U.S. dollar since 1980. The fixed exchange rate is 1 QAR = 0.27 USD (or 1 USD = 3.64 QAR). This peg helps to stabilize the Qatari economy, ensuring that its currency value remains relatively steady in the international market. Given Qatar's significant wealth derived from its vast oil and natural gas reserves, the Qatari riyal has remained stable and is widely regarded as a strong currency in the region.



Coins and Banknotes
The Qatari riyal comes in both coin and paper form. Coins are available in denominations of 1, 5, 10, 25, and 50 dirhams, as well as 1 riyal. Banknotes, on the other hand, are issued in denominations of 1, 5, 10, 50, 100, 500, and 1000 riyals. The design of the banknotes features various landmarks and symbols of Qatar, such as the iconic Pearl Monument, the traditional dhow boat, and the country's national emblem. The banknotes are printed in Arabic and feature security features to prevent counterfeiting, such as watermarks and security threads.

Economic Importance
The Qatari riyal plays a crucial role in Qatar’s economy, which is among the richest in the world, largely due to the country’s vast natural gas reserves. Qatar is one of the world’s leading producers of liquefied natural gas (LNG), and the revenues from this sector have led to a significant increase in wealth, allowing the country to invest heavily in infrastructure, development projects, and international investments.

The riyal is not freely traded in global markets due to its fixed exchange rate. However, it is stable and well-regarded in regional and international finance, and the Central Bank of Qatar plays a key role in maintaining its value.

In summary, the Qatari riyal is the cornerstone of the country’s monetary system, representing its economic stability and financial strength in a global context.