Question

In: Finance

current Monetary Policy of Qatar? is it independent? Why?

current Monetary Policy of Qatar?

is it independent?

Why?

Solutions

Expert Solution

It is not independent because the monetary policy of Qatar is largely dependent on the US monetary policy. This is because the reason that the Qatari riyal has been pegged to the United States Dollar, so to maintain this peg, the Qatari central bank needs to cut interest rates in line with the interest rates cut by the US Fed and vice versa.


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