The exchange rate for GBP to QAR currently rests at 4.8702, slightly above its three-month average of 4.846, indicating stability within a 4.1% range. Recent economic indicators reveal challenges for the British pound, with the UK experiencing a surprise contraction of 0.1% in GDP for October. This contraction has led to increased speculation regarding a potential interest rate cut by the Bank of England, as highlighted by analysts who foresee continued weakness in the pound ahead of significant economic data releases.
Concurrently, UK fund managers are increasing their foreign exchange hedging in response to rising volatility in the pound. This reflects a cautious sentiment regarding the currency's short-term stability, particularly as the pound has weakened against the Euro while showing strength against the US dollar. Analysts attribute the latter to improved growth forecasts and expectations of a slower pace in interest rate cuts from the Bank of England.
On the Qatari side, the riyal is supported by robust growth in international reserves, which reached 260 billion riyals in July 2025, and recent interest rate adjustments by the Qatar Central Bank aimed at stimulating the economy. As the Qatari economy remains resilient, with stable exchange rates against various currencies, the riyal's position appears strong.
Oil prices, which significantly impact the Qatari economy, have been volatile, trading at $60.69, which is 5.1% below its three-month average. This volatility in oil prices could affect the strength of the QAR going forward, as an increase or decrease in oil values can influence the overall economic outlook for Qatar.
Economists suggest that the GBP to QAR rate may experience downward pressure due to UK economic conditions and ongoing volatility in the currency markets, while the stability and economic fundamentals of Qatar may help to bolster the riyal against fluctuations in the pound. As market watchers continue to monitor these developments, they recommend considering the impact of global economic trends on foreign exchange transactions.
