Some banks ‘refrain from extending Qatari banks deposits’

CAIRO – 7 August 2017: A number of banks in Egypt, Saudi Arabia, the United Arab Emirates and Bahrain have reportedly refrained from extending deposits with Qatari banks.

Sources familiar with the matter, requested to remain anonymous, told Bloomberg on August 6 that these banks are worried about facing repercussions from their government had they continued business ties with Qatar.

The news indicated that foreign deposits at Qatari banks might fall further.
Deposits of non-residents of Qatar in 18 banks already dropped 7.6 percent to QAR 170.6 billion ($47 billion) in June from a month earlier, according to the Qatar Central Bank (QCB).

More pressure on the Qatari foreign reserves witnessed as governor of the central bank Sheikh Abdullah bin Saud Al-Thani said in July that QCB has noticed fund outflows from some non-residents, but he said the amounts were not particularly significant.
Qatar’s net international reserves declined 30 percent in June to $24 billion, according to QCB figures.