Qatar Sues UAE, Saudi, And Luxembourg Banks Over Riyal Manipulation 1

Last Monday Qatar filed two lawsuits in New York against First Abu Dhabi Bank (FAB) and Samba Bank,  and one in London against Bank Havilland. The lawsuit claimed the following banks took actions to destabilize the Qatar Riyal (QR) according to a press release from the Qatar Government.

“The Banks Havilland values its reputation and confirms that it never executed or interfered to execute any of the transaction,”  said the Bank Havilland in response to the lawsuit. Apart from that, the Qatar government placed a lawsuit against analyst Vladimir Bolelyy. The analyst got sued due to a supposed scheme to weaken and potentially destroy the QR.

The other banks, Samba and FAB, were accused of “submitting fraudulent quotes to foreign exchange platforms in New York to manipulate and disrupt the market,” said the Qatar government in their statement. The banks have not commented on the accusations yet. In the lawsuits, the Qatar government also implied that the entities were doing illegal actions in order to weaken the QR in order to damage and scare foreign and local investors.

As known, Qatar had a huge economic and diplomatic blockage from its neighbours Saudi Arabia, Bahrain, Egypt, and United Arab Emirates. The Qatar government dealt with this blockage in 2017 due to Saudi accusations of them supporting terrorism. The government became a self-sufficient economy, trying to create diplomatic ties internationally. This blockage happened due to Qatar not complying with 13 demands from Saudi Arabia.

These demands varied from cutting ties and handing over terrorist groups, shutting down news media, compensate the military of countries affected by terrorist attacks, and cut ties with Iran. These demands had to be met within 10 days, which Qatar did not do. As they did not comply, the surrounding nations banned aerial and shipping to Qatar, blocking the country’s petroleum exports. Qatar had to learn to be a self-sufficient economy, therefore making them more skeptical and resulting in them taking radical actions to sue these banks.

The possibility exists of exposing the bank’s possible close ties to the government. Therefore this might result in a scandal. Qatar has taken this legal action in front of the International Court of Justice, and was granted indicated measures of investigation favouring the Qataris. The leading banks also gave a false allusion that the economy was crumbling, which the government said was fake. The trial is still pending and waiting for the accusations against the leading banks.

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