Some Egyptian Banks Halt Dealings With Qatari Banks After Rupture

A man walks past a branch of Qatar National Bank (QNB). Some Egyptian banks halted dealings with Qatari banks on Monday, four Cairo-based bankers said, responding to Cairo's announcement that it had cut ties with Qatar.

By Asma Alsharif

CAIRO, June 5 – Some Egyptian banks halted dealings with Qatari banks on Monday, four Cairo-based bankers said, responding to Cairo’s announcement that it had cut ties with Qatar, accusing it of supporting terrorism.

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

The four bankers said the halting of 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.

There had been no official communication to banks from the Central Bank of Egypt on the split, the bankers said, and the central bank did not immediately respond to requests for comment.

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

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

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