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Qatar riyal weakest since 2005 but no threat of devaluation, bankers say

Previous dips usually lasted a day, this time riyal has quoted much lower than its peg for 2 weeks

Reuters  |  Dubai 

Qatar's riyal is being quoted weaker than its peg against the dollar as Doha grapples with a diplomatic crisis, but that is the result of poor liquidity in the currency market rather than a serious threat to the peg, bankers in the region say. The riyal, officially fixed at 3.64 to the dollar since 2001, has been offered as low as 3.6680 since Saudi Arabia and other Arab states cut diplomatic and transport ties with Doha on June 5, accusing it of backing terrorism. That was not a big move in absolute terms, less than one per cent, but it marked the weakest spot market rate since ...

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First Published: Sun, June 18 2017. 18:37 IST