Qatari Riyal at New Low

The Qatari riyal fell to a new one-year low against the dollar in futures market due to continued speculation in the currency markets regarding it, reported Alarabiya. There are also concerns over the long-term economic impact on Qatar after Saudi Arabia and the UAE severed relations. The central bank in Doha links the Qatari riyal at 3.64 riyals to the dollar and allows for limited volatility around this level. The Saudi Arabian Monetary Agency and the UAE central bank have instructed their banks not to deal with Qatari banks in Qatari riyals. This has come days after Moody’s decided to cut Qatar’s credit rating to AA3 from AA2, given the country’s weak external position and the uncertainty surrounding the sustainability of the growth model. Meanwhile, Qatar dismissed allegations of support for militancy on Friday after four Arab states (Saudi Arabia, Bahrain, Egypt and the UAE), which cut ties with Qatar this week, blacklisted as terrorists dozens of people.