Qatar has imposed more restrictions on First Abu Dhabi Bank (FAB) as it continues a probe into alleged currency manipulation begun after the UAE and other Arab states launched a boycott against Qatar in 2017, Reuters has reported.
The Regulatory Authority of Qatar Financial Center (QFC) said on Sunday it was prohibiting FAB from undertaking any new business for customers of its Doha branch. It has barred FAB from providing services for new customers since March but had allowed the bank to continue working with existing customers.
QFC said in March that FAB had failed to produce documents relevant to the currency manipulation investigation.
In a statement on Sunday, QFC said the new bar was “because FAB continues to fail to satisfy the Regulatory Authority of its fitness and propriety in respect of its conduct in the QFC”.
Qatar keeps the riyal pegged at a fixed rate to the US dollar, but saw it trade several percents weaker than its usual rate in offshore markets just after the dispute began. Last year, Qatar asked US regulators to investigate the American unit of FAB, accusing it of “bogus” foreign exchange deals designed to harm Qatar’s economy.