Until late November, the riyal swung widely between its peg of 3.64 to the dollar, widely used onshore, and much weaker offshore rates. On November 21, it traded as low as 3.8950 on the Reuters conversational dealing platform.
Commercial bankers blamed the volatility on poor market liquidity in the wake of a decision by Saudi Arabia and three other Arab states to cut diplomatic and trade ties with Doha in June.
Qatar's riyal is stabilising in offshore trade, recovering from several weeks of increasing volatility, after the central bank pledged to ensure liquidity in the foreign exchange market, commercial bankers said on Sunday.
