Qatari riyal facts for kids
Quick facts for kids Qatari riyal |
|
|---|---|
| ISO 4217 Code | QAR |
| User(s) |  Qatar
|
| Inflation | 5.42% |
| Source | Qatar Central Bank, 2022. |
| Pegged with | US dollar US$1 = QR 3.64 |
| Subunit | |
| 1⁄100 | dirham |
| Symbol | QR and ر.ق |
| Coins | |
| Freq. used | 25, 50 dirhams |
| Rarely used | 1, 5, 10 dirhams |
| Banknotes | |
| Freq. used | QR 1, QR 5, QR 10, QR 50, QR 100, QR 200, QR 500 |
| Rarely used | QR 22 (commemorative) |
The Qatari riyal (sign: QR or ر.ق) is the official money used in Qatar. It is divided into 100 smaller units called dirhams (Arabic: درهم). The Qatari riyal has an ISO code of QAR.
Contents
History of Qatar's Money
How Qatar Got Its Own Currency
Before 1966, Qatar used the Indian rupee, specifically a version called the Gulf rupee. But in 1966, India changed the value of its rupee. Because of this, Qatar and other nearby countries decided it was time to create their own money.
From Gulf Rupee to Qatari Riyal
For a short time, Qatar used the Saudi riyal. Then, on March 21, 1966, Qatar and Dubai signed an agreement to create a shared currency called the Qatar and Dubai riyal. This new money had the same value as the old Gulf rupee before it lost value.
At first, the Qatar and Dubai riyal was linked to the British pound. When the British pound's value changed in 1967, the riyal's value also changed to keep it stable compared to gold.
Qatar's Own Riyal
After Dubai joined the United Arab Emirates, Qatar started issuing its own money, the Qatari riyal, on May 19, 1973. The old Qatar and Dubai notes were still used for 90 days, then they were taken out of circulation. This is how Qatar got its very own currency.
Coins of Qatar
What Coins Are Used?
In 1966, coins were first made for Qatar and Dubai. These coins came in values of 1, 5, 10, 25, and 50 dirhams. In 1973, Qatar started making its own coins with the same sizes and materials, but only in Qatar's name.
Today, the 25 and 50 dirham coins are the ones you'll see most often. The smaller 1, 5, and 10 dirham coins are still official money, but they are not used as much.
Banknotes of Qatar
The First Banknotes
On September 18, 1966, the Qatar & Dubai Currency Board released banknotes in values of 1, 5, 10, 25, 50, and 100 riyals. These were later replaced on May 19, 1973, by new notes from the Qatar Monetary Agency. These new notes came in 1, 5, 10, 100, and 500 riyal values. A 50 riyal note was added in 1976.
The Qatar Central Bank and New Designs
The Qatar Central Bank was created on August 5, 1973. All the coins and notes from the Qatar Monetary Agency then became the property of this new bank.
Over the years, Qatar has released several new series of banknotes. The Fourth Series came out in 2003, with updated designs for the 100 and 500 riyal notes in 2007, and for the 1, 5, 10, and 50 riyal notes in 2008.
On December 13, 2020, the Qatar Central Bank released its Fifth Series of banknotes. This series included a new 200 riyal banknote. The front of these notes all share a similar look, featuring traditional patterns, the Flag of Qatar, Qatari plants, and a gate that looks like old Qatari buildings.
Special Commemorative Banknote
Qatar also made a special 22 riyal note to celebrate the 2022 FIFA World Cup. This is a unique banknote that was created for a specific event.
How the Qatari Riyal's Value Stays Fixed
Pegged to the US Dollar
The Qatari riyal has a fixed exchange rate with the US dollar. This means that US$1 is always equal to QR 3.64. This rule was made official by a law signed by the Emir of Qatar, Hamad bin Khalifa Al Thani, on July 9, 2001.
This law makes sure that the Qatar Central Bank buys and sells US dollars to banks in Qatar within a very small range of this fixed rate. This helps keep the value of the Qatari riyal stable.
What Happened During the 2017 Qatar Crisis?
In 2017, some countries had a disagreement with Qatar. Because of this, banks in those countries stopped trading with Qatari banks. This made it harder to exchange Qatari riyals outside of Qatar, and sometimes the price was different from the fixed rate.
However, inside Qatar, the Qatar Central Bank continued to buy and sell US dollars at the official fixed rate, keeping the money stable within the country.
Related Topics
- Economy of Qatar
- Qatar Central Bank
