Mubasher: Some banks in Sri Lanka have said that they stopped buying Qatari riyals on Tuesday, noting that their Singaporean counterparts have advised them against buying the Gulf currency on the back of diplomatic rifts, Reuters reported.
The Singaporean banks advised banks in Sri Lanka to avoid accepting the Qatari currency after several Arab countries including Saudi Arabia, Egypt, Bahrain, and the UAE announced cutting diplomatic relations with Qatar.
Saudi Arabia, Egypt, and the UAE accused Qatar of supporting terrorism and Iran and coordinated a move against it.
"Our counterparty in Singapore has asked us not to buy Qatar riyal," a senior currency dealer at a bank told Reuters, while dealers at four other banks said that they stopped purchasing the Qatari currency.
Meanwhile, a dealer from a state bank told the news agency that there was “an adjustment in the Qatar riyal after some banks have stopped buying."
On Tuesday, the Sri Lankan central bank denied media reports saying it had informed banks "not to accept Qatari riyals". A top official at the Sri Lankan regulator said the central bank will discuss the issue of the Qatar riyal at a meeting on the same day.
