Economics
Gulf Banks Cut Qatar Exposure as Wider Sanctions Seen
- Lenders said to pull deposits, stop trading Qatari riyals
- U.A.E. minister says allies ‘ready’ for further sanctions
Qatar Banking System Relies on Foreign Cash for Liquidity
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Some banks in Saudi Arabia, the United Arab Emirates and Bahrain are cutting their exposure to Qatar amid concerns of a widening of the blockade on the gas-rich Gulf state, people familiar with the matter said.
Some lenders in these countries have started withdrawing deposits from Qatari banks and stopped trading riyals and bonds, the people said, asking not to be identified because the matter is private. One possibility of the deepening of measures against Qatar could be the imposition of financial sanctions, the people said.