Qatar says it will continue to peg its currency to the falling dollar

DUBAI, United Arab Emirates: Qatar will not depeg or revalue its currency despite increasing pressure on oil-rich Gulf states to sever their links to the falling dollar, Qatar’s central bank governor said Sunday.

Oil is priced in dollars on the world market, but many Gulf countries rely on government-subsidized imports priced in euros and other currencies that have been rising against the greenback.


This relationship has pushed up the price of imports, a dilemma that could get worse as fears of a recession in the U.S. and related interest rate cuts continue to push down the dollar.

“We will stick to the dollar,” Qatar’s central bank governor Abdullah Bin Saud Al Thani told Dow Jones NewsWires on Sunday.

AP