Some Egyptian banks halt dealings with Qatari banks: bankers

Some Egyptian banks have halted Monday dealings with Qatari banks, four Cairo-based bankers said, responding to Cairo’s announcement that it had severed diplomatic relations with Qatar, accusing it of supporting terrorism.

Egypt’s action, announced in Monday’s early hours, was coordinated with similar moves by Saudi Arabia, the United Arab Emirates and Bahrain. Egypt did not say if the measure included a suspension of trade with Qatar, and the Trade Ministry did not immediately respond to questions on this.

The four bankers said the halt to transactions with Qatari banks came on internal orders from management at their banks, and excludes the opening of letters of credit required for imports.

Some banks have stopped accepting Qatari currency while others are halting some treasury transactions, the bankers said.

Bankers at three other lenders said they had not received any orders and that it was business as usual so far.

There had been no official communication to banks from the Central Bank of Egypt on the split, the bankers said.

An Egyptian official confirmed to Reuters that the central bank had not ordered banks to suspend transactions in Qatari riyals.

As well as severing relations, Egypt announced the closure of its air space and seaports for all Qatari transportation and said this was to protect national security.

Source: Reuters