Dubai/Doha — Qatar’s currency came under pressure on Tuesday as Gulf Arab commercial banks started holding off on business with Qatari banks because of the diplomatic rift in the region. Banking sources said some banks from Saudi Arabia, the United Arab Emirates and Bahrain delayed letters of credit and other deals with Qatari banks after their governments cut diplomatic ties and transport links with Doha on Monday, accusing Qatar of backing terrorism. Saudi Arabia’s central bank advised banks in the kingdom not to trade with Qatari banks in Qatari riyals, the sources said. The central bank did not respond to a request for comment. One banker in Riyadh said that he had received a directive from the central bank that essentially banned further transactions with any Qatari institution, but that the document was ambiguous in some areas, such as how to handle existing syndicated loans, so he would seek clarification. Qatar has dismissed the terrorism charge and welcomed a Kuwaiti mediat...
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