Oman orders trade of Qatari Riyal at official rate

The Central Bank of Oman urges all banks and exchange companies to trade the Qatari riyal at the official exchange rate.

    Omani banks asked to exchange Qatari riyals at the official rate [Reuters]
    Omani banks asked to exchange Qatari riyals at the official rate [Reuters]

    The Central Bank of Oman ordered all local commercial banks and exchange companies to trade the Qatari riyal at the official exchange rate.

    "The Central Bank of Oman will also accept Qatari riyals and provide exchange services if needed," the statement said.

    The Qatari currency came under pressure as Gulf commercial banks began to hold off on dealing with Qatari banks because of the diplomatic rift in the region.

    Late last month, the Qatari riyal was trading in Oman below the official peg, set at 3.65 to the dollar.

    Trade volume between Qatar and Oman stood at around $800m in 2015, according to Qatari sources.

    READ MORE: Qatari riyal trade disrupted at several UK banks

    Some banks in Saudi Arabia, the United Arab Emirates and Bahrain were delaying business with Qatari banks, such as letters of credit, after their governments cut diplomatic ties and transport links with Doha in June.

    Last month, Saudi Arabia's central bank advised banks in the kingdom not to trade with Qatari banks in Qatari riyals.

    Qatari assets have come under pressure since Saudi Arabia, the UAE, Bahrain and Egypt imposed a boycott on the Arab Gulf country.

    SOURCE: Al Jazeera and news agencies


    YOU MIGHT ALSO LIKE

    Meet the deported nurse aiding asylum seekers at US-Mexico border

    Meet the deported nurse helping refugees at the border

    Francisco 'Panchito' Olachea drives a beat-up ambulance around Nogales, taking care of those trying to get to the US.

    The rise of Pakistan's 'burger' generation

    The rise of Pakistan's 'burger' generation

    How a homegrown burger joint pioneered a food revolution and decades later gave a young, politicised class its identity.

    'We will cut your throats': The anatomy of Greece's lynch mobs

    The brutality of Greece's racist lynch mobs

    With anti-migrant violence hitting a fever pitch, victims ask why Greek authorities have carried out so few arrests.