Foreign exchanges and banks around the world are refusing to buy Qatari riyals, Doha News reported on Thursday.
Exchange agencies in several countries have confirmed that they are not currently accepting Qatari riyals. Additionally, residents of Qatar have reported difficulties exchanging currency after traveling to the United States, Europe and Asia.
"I can confirm that we’re not buying Qatari riyals in the UK," a spokesperson for Travelex in the UK told Arab News, but added that it is "not a global policy."
A resident of Qatar visiting the U.S. told Doha News that he had tried to exchange riyals at multiple prominent banks and none were willing to buy the Qatari currency.
"They’ve informed me that a directive was sent out to all US banks not to accept Qatari Riyals at all," he said.
Similarly, in the Philippines, a woman tried exchanging the currency without success.
"All the banks and all the money changers here in the Philippines are telling me that Qatari money has no rate," she said.
Within the UAE, most currency exchanges have stopped buying Qatari riyals as of early June. But at least one exchange house told Arab News it was still accepting the currency.
Others on social media have reported finding places willing to exchange, but at significantly reduced rates.
Since the blockade of Qatar by Saudi Arabia, the UAE, Bahrain and Egypt started earlier this month, the Qatar riyal has fallen in comparison to the U.S. dollar, according to Al Jazeera. But reports said that the riyal was strengthening this week.
Nonetheless, rating agencies have dropped Qatar's credit rating as the GCC dispute continues. Now, it appears foreign exchange centers around the world have decided to shy away from collecting any more Qatari riyals, staying firmly on the side of caution.
Omar Mohammed, a financial analyst of international money transfer firm Imperial FX, told Doha News that the uncertainty of the Gulf crisis has many investors worried. He explained that many are concerned Qatar could fall into "a persistent economic crisis."
“The Qatari Riyal was trading on the futures market at an annual low, and they have recently been placed on a negative credit watch because portfolio investment funds have left the country so quickly. Oil prices have fallen and experts are now voicing their concerns over the sustainability of Qatar’s energy revenues," Mohammed said.
With the UAE and Saudi Arabia both voicing their resolve to hold Qatar to the 13 demands issued last week before the blockade is lifted, it appears the financial expert's concerns are more than justified.