Qatari Riyal is the currency of Qatar, with ISO 4217 code of QAR and abbreviation of QR. The currency is being circulated and monitored by the Qatar Central Bank which was established by decree 15 on August 5, 1973. The Qatari Riyal is divided into 100 dirham and has both coins and bill denominations. The Qatar coins include 1 dirham, 5 dirhams, 10 dirhams, 25 dirhams, and 50 dirhams. Meanwhile, the banknotes are in denominations of 1 riyal, 5 riyals, 10 riyals, 100 riyals, and 500 riyals.
Qatar used the Indian rupee as currency, in the form of Gulf rupees until 1966 when India devalued the rupee. After the devaluation, Qatar, along with the other states using the Gulf rupee, chose to introduce its own currency. Qatar briefly adopted the Saudi riyal, and then introduced their own currency in May 19, 1973. The old banknotes continued to circulate in parallel for 90 days, at which time they were withdrawn. The Qatar and Dubai Currency Board introduced notes for 1, 5, 10, 25, 50 and 100 riyal on September 18, 1966. These banknotes were replaced on May 19, 1973 by notes of the Qatar Monetary Agency. All coins and notes issued by the Qatar Monetary Agency became the property of the Qatar Central Bank but continued to circulate for several years.
In March 1975, the riyal was officially pegged to the International Monetary Fund’s special drawing rights. The special drawing rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund. Special drawing rights were created by the IMF in 1969 and were intended to be an asset held in foreign exchange reserves under the Bretton Woods system of fixed exchange rates. Special drawing rights was a debt security when member countries receiving allocations were required by the reconstitution provision of the special drawing rights articles to hold a prescribed number of special drawing rights. If a state used any of its allotment, it was expected to rebuild its special drawing rights holdings.
With its major businesses in crude oil production and refining, ammonia, fertilizers, petrochemicals, steel reinforcing bars, cement, commercial ship repair, Qatar is now the richest country in the Muslim world. Qatar has the highest gross domestic product per capita in the world as of 2012, according to the CIA World Factbook. The rising global oil demand helped current Qatar gross domestic product per capita to expand 94 percent. The inflation or rise in the general level of prices of goods and services in an economy is approximately 2.8 percent. Population below poverty line is zero while unemployment rate is only 0.4 percent. Quality of life index is at rank 41st amongst 111 evaluated nations. Meanwhile, Ease of Doing Business Rank is at 40th amongst 185 nations evaluated.
In line with the scheduled 2022 World Cup in Qatar, human rights advocate have now been examining the country’s recruitment and employment system, where 94% of their workforce is non-Qatari. The Qatari Labor Law is assumed to have been partially conservative against its migrant workers. In response to the 2022 World Cup demands, the Qatari government recently suggested it will replace the current sponsorship scheme with a system of contracts between employers and employees.