FOREIGN DEPOSITS FALL
Gulf banks pulling back from Qatar
Some banks based in Saudi Arabia, the United Arab Emirates, Bahrain and Egypt will not extend deposits with Qatari lenders when they matured
London/Dubai — Foreign deposits at Qatar’s banks may fall further after dropping the most in almost two years in June as some Gulf lenders refuse to roll over holdings, people with knowledge of the matter say.
Some banks based in Saudi Arabia, the United Arab Emirates, Bahrain and Egypt were not extending deposits with Qatari lenders when they matured, said the people, asking not to be identified because the information is private.
These banks were concerned that they could face repercussions from their governments for continuing business relations with Qatar after they cut ties with the country, the people said.
Lenders were also struggling to repatriate funds because their counterparts in Qatar were not swapping riyals into dollars, the people said. Banks could either roll over their riyal deposits or convert them into dollars in the offshore market where they got a worse exchange rate than Qatar’s pegged official rate, they said.